2 Short-Term Bull Flags to Keep an Eye On

Two very different opportunities with the same chart pattern

   

The Trending123 Pattern Scan powered by Recognia has uncovered some new short-term bullish flag patterns that, if confirmed, should play out in the next week.

A bullish flag pattern occurs during a dynamic market rally, representing a brief pause as the market “catches its breath” before running off again in the same direction.

The rectangular flag shape is the product of what technical analysts refer to as consolidation. Consolidation occurs when the price seems to bounce between an upper and lower price limit. This might occur, for example, in the days following a positive product announcement, when the excitement is starting to subside, and fewer buyers are willing to pay the high price that was commanded just a few days before. But, at the same time, sellers are unwilling to sell below a lower support limit.

The pattern consists of two parallel trend lines, often sloping downward against the prevailing uptrend, and is confirmed when the price breaks through the upper boundary to resume the rise.

In essence, the pattern represents a sharp rally after the stock has taken a brief pause.

Plug Power (PLUG)

Pattern Duration: 6 days

Target Price: $0.51 – $0.55

Stop: $0.22

7 18 13 plug 2 Short Term Bull Flags to Keep an Eye On

 

Hancock Holding Co. (HBHC)

Pattern Duration: 7 days

Target Price: $35.90 – $36.80

Stop: $29.26

 7 18 13 hbhc 2 Short Term Bull Flags to Keep an Eye On

InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123.  For a great deal on Parabolic Options, click here.

 


Article printed from InvestorPlace Media, http://investorplace.com/247trader/2-short-term-bull-flags-to-keep-an-eye-on/.

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