ASTM: Re-testing The Breakout

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October 3, ASTM broke out of a two-month Bullish Inverse H&S pattern, the neckline of which was 1.25 and 1.24. On the technical breakout of a neckline like that, we want to see a print of 1.26, a takeout of BOTH numbers, which we got.

Once it broke out, a target of 1.40 was IN PLAY.

Math:

1.24 - High (the more conservative of the 1.25 - 1.24 neckline)
1.08 - Low of the pattern

1.24 - 1.08 = 0.16 points + 1.24 = Target: 1.40 IN PLAY

It's just as valid to use the 1.25 high to measure, and many technicians do, but I like to be conservative. Using 1.25, would give us a target of 1.42 IN PLAY.

On the October 3 breakout day, ASTM closed at the high of the day, 1.37 on 2.5 million shares, which is very good volume for this stock, indicating strong buying interest on the technical breakout.

October 4, ASTM was indicated higher on some news, right at the 1.40 (or 1.42) target IN PLAY. From where the stock was postioned, just below the target, and well into the broken Ascending Triangle (June 6) resistance, that suggests a "Gap To Crap" on the news.

"Take profits when targets get MADE." The high on the day was 1.43 and ASTM since has come back to re-test the 1.25 - 1.24 neckline breakout. The low so far today is 1.25.

I like the fact that, longer-term, we've got a "possible" 14-month Double Bottom in place at the 1.10-1.08 lows, and shorter-term, I like the fact that the Bullishness of the Inverse H&S was confirmed when the pattern target got MADE.