Science of Stock Price Action:
A Bullish stock after a big rally goes into consolidation mode and forms a Bullish Base before it can rally again. The Bullish Base acts as a Launch Pad and one does get rewarded by believing in such stocks on third dip near Bullish Base.
South West Airlines LUV @ Bullish Base
Southwest Airlines: The stock is back to a level from where it has bounced in the past. This time – the question is – Fuel Price – has it peaked? If yes then a 20% rally probable. But if stock sinks below 48 – then 🙁 pic.twitter.com/O3rnY6rsxW
— Deepak Singh (@smarket) June 6, 2018
Here’s what the stock has done from the base – the stock is up 24%
Abbvie @ Bullish Base
AbbVie +4.25% dividend Yield at cmp of $90. The company will deliver 40% earnings per share (EPS) growth this year and trading at forward pe of 10.
Value Buy pic.twitter.com/D1ZRmhSVNJ— Deepak Singh (@smarket) July 30, 2018
The stock has not made much progress but the pattern still stands