PAAS: Three Bullish Patterns

From Thursday morning:
"I was wanting a breakout of The Rectangle before the close, back to the morning highs, but I didn't get it. If I had, I would have held some shares, and I definitely would have held some shares if I had gotten filled at the open, at 20.15 (Curses!), but given my late entry at 20.67, I said, "Deal!" near the close, and took the money."

The Rectangle (pattern in yellow in the next chart) broke to the downside Thursday morning, which gave me an opportunity to buy back my shares at a lower price. I repurchased PAAS at the 61.8% retracement of Wednesday's Breakaway Gap candle in the daily chart.

High: 21.35. Low: 20.16. 61.8% Retracement: 20.615.


The Bullish Falling Wedge (pattern in white) ended up morphing into a larger triangle, or channel (pattern in green), if you will. That pattern (in green) broke out Thursday morning, above 20.99, putting a target of 21.99 IN PLAY.

21.35 - High of the pattern
20.35 - Low of the pattern

21.35 - 20.35 = 1.00 point of upside from the breakout, at 20.99.

1.00 + 20.99 = Target: 21.99 IN PLAY

After the breakout, PAAS rallied to 21.66, then went into the third bullish pattern, the Bull Flag (pattern in red). That pattern broke out near the close, at 21.19, putting a target of 21.96 IN PLAY.

21.66 - High of the pattern
20.89 - Low of the pattern

21.66 - 20.89 = 0.77 points of upside on a breakout above 21.19

21.19 + 0.77 = Target: 21.96 IN PLAY

When there are two targets very close to the same price, in this case 21.96 and 21.99, that increases the likelihood that they will get MADE. There never are any guarantees, of course. But, as we've seen so often, when there are "nested" patterns, or multiple patterns like we've got here, stocks can have a nice pop.



PAAS gapped higher at Friday's open, and the targets of 21.96 and 21.99 got MADE in the early going. I sold. The high on the session was 22.14, just above the targets.


Gain: $3,400. That salves my wounds for getting pipped at the post for ONE PENNY on my order to Buy PAAS on Wednesday morning for 20.15. LOL. (Low was 20.16).