Bruce asked 7 years ago
Hi Pat,
I read the chart of the Key List and then have one question.
The pattern is tight, consolidated for several weeks, and waiting for break out. But as "CGNX", seems lifting up from the bottom. Is it match your criteria? Should we avoid such pattern? Thanks, wiwi
1 Answers
Pat Walker Staff answered 7 years ago
Good morning wiwi Lu!
Great to hear from you. Welcome to the "team." I have included the chart of CGNX. Yes, you are correct. That is a tight consolidation. As you stated, it was lifting from the bottom. For me, more importantly, it was well below the 50 day moving average. I have a rule. I avoid stocks that are quite a bit below the 50 day. I realize it lifted back over the 50 day recently. But overall, I have found thru 30 years of experience better odds of success focusing on stocks at or above this very important moving average. I hope this helps.
Thank you for the question! Have a wonderful, safe weekend.
Sincerely,
Pat
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