CAREDX to $29 Inverse Head & Shoulders pattern BROKEN OUTIt's a nice pattern
Thought I would share
May be of interest to share holders ;)
CDNA
$CDNA Continuation Long Term Channel UpHello, traders! Today we're spotlighting NASDAQ:CDNA (CareDx, Inc), which is exhibiting a compelling long-term Channel Up reversal structure. This formation indicates a robust bullish sentiment, which could potentially lead the stock to revisit its all-time highs and even explore new price levels in the coming years.
Chart Analysis:
Pattern: Channel Up Reversal
Current Price: $11.06
Volume: Ideally, increasing volume should accompany the price rise, confirming the strength of the reversal.
Key Observations:
The Channel Up pattern suggests a stable and consistent uptrend. The stock's ability to maintain higher lows over an extended period is a strong bullish indicator.
The reversal is taking shape after a period of consolidation, offering a clear channel structure as a roadmap for future price movements.
Trading Strategy and Targets:
First Target (TP1): Around $15-$16, aligning with the first significant Fibonacci retracement level and expected resistance.
Second Target (TP2): The next major Fibonacci area falls between $30-$34, where previous resistance could convert into new support, paving the way for further gains.
Third Target (TP3): Aiming for $55-$60 as the subsequent Fibonacci level and psychological resistance point.
Long-Term Targets:
All-Time High (ATH): Reaching for the ATH around $100. Breaking this level could trigger a strong psychological buying response.
Price Discovery Phase: If the momentum continues beyond the ATH, speculative targets could range between $200-$350, based on extended Fibonacci projections and market dynamics.
Trade Setup:
Entry Point: Consider entries on pullbacks to lower channel boundaries or after a high-volume breakout above recent highs.
Stop-Loss: Set stop-loss orders below the most recent swing low within the channel to protect from downward breaks.
Take-Profit: Gradually take profits at the described Fibonacci levels, potentially using a trailing stop to maximize gains.
Risk Management:
Invest cautiously, as long-term trades are susceptible to broader market shifts and specific sector impacts. Adjust your exposure based on your risk tolerance and always have an exit strategy in place.
Conclusion:
NASDAQ:CDNA offers a textbook example of a Channel Up reversal that could reward patient investors handsomely. Keep a close eye on industry trends and financial reports that could influence the stock’s trajectory. Happy trading and let’s ride this channel to new heights!
Disclaimer: This analysis is for educational and entertainment purposes only and is not financial advice. Always perform your own research and consult with a professional before making any investment decisions.
RSI flashing overbought for CDNABased on historical movement, the peak could occur anywhere in the larger red box. The final targets are in the green boxes. The pending bottom should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated SELL on August 25, 2021 with a closing price of 78.47.
If this instance is successful, that means the stock should decline to at least 76.99 which is the top of the larger green box. Three-quarters of all successful signals have the stock decline 3.886% from the signal closing price. This percentage is the top of the smaller green box. Half of all successful signals have the stock decline 10.0% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock decline 15.694% from the signal closing price which is the bottom of the smaller green box. The maximum decline on record would see a move to the bottom of the larger green box. These are the same concepts for the levels in the red boxes as well.
The ends/vertical sides of the boxes are determined in a similar fashion. The trough of the decline can occur as soon as the next trading bar after signal close, while the max decline occurs within the limit of study at 40 trading bars after the signal. A 0.5% decline must occur over the next 40 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 10 trading bars; half occur within 25 trading bars, and one-quarter require at least 31 trading bars.
The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement.
As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
CDNA and a RetestCDNA - looking to retest $5.50/$5.53 before it can make a run to $6.29 range.
Consolidation of volume, RSI waiting to make a move, breakout of the falling wedge, the candlestick, to me on this day 03/01, shows me that ultimately there's an agreement in price. However, almost a $0.50 swing here as well, as investors begin to stare each other down.
Let's see what happens!
*Disclaimer - I am not a financial advisor. These are merely my opinions. Do your own research and formulate your own opinions regarding any moves you make. Seek professional investing assistance.
