Clicky

BITA Trade Setup

A few things stand out on BITA (Bitauto Holdings Ltd): A potential H&S bottoming pattern (purple), the key downtrend line resistance just overhead as well a the recent divergent low. BITA will trigger a long entry on a break above 30.22 (the top of the resistance (R) zone) with a suggested stop below 25.70. Props to member @hiddenpivots for pointing this one out.

BITA daily April 14th

BITA daily April 14th

1+
Apr 14, 2016 11:40am|Categories: Uncategorized|Tags: |3 Comments

3 Comments

  1. HiddenPivots April 14, 2016 12:04 pm at 12:04 pm

    Thanks Randy, Nice chart! Lets keep an eye on BITA as it consolidates.

    0

  2. Gaucho April 25, 2016 1:17 pm at 1:17 pm

    Hi Randy,

    BITA reached the stop (25.70) before trigger the long entry on a break above 30.22.

    My question is: if the long entry on a break above 30.22 is still valid?

    Regards

    0

  3. rsotc April 25, 2016 1:53 pm at 1:53 pm

    As of now, yes, BITA is still a trade setup with the same entry criterion of a break over 30.22. Sometimes the bullish (or bearish) nature the chart pattern on a trade setup will dissipate before prices even more above (or below) the trigger price. However, that hasn’t been the case on this one just yet as it is not uncommon to see at least one reaction on the initial tag of the neckline once the right shoulder has been finalized, such as the case with BITA.

    The pattern still looks intact so I’ll leave it on as a trade setup for now. I should also mention that sometimes H&S patterns and IHS patters, like this one, sometimes form two right shoulders or two left shoulders instead of one. Therefore, BITA could pullback once more to around the 23.30ish area if it reversed there to put in a possible 2nd right shoulder, still keeping the setup in play. However, if it moves much below 23.00, the symmetry to the pattern wouldn’t be intact anymore & I will remove this one from the trade setups category.

    0

Comments are closed.