The Best Dressed Chart Patterns Of 2020 - Part I

American Eagle (AEO)

  • Chart Pattern Length: 15 weeks
  • Days To Reach Price Target: 2

AEO developed serious volatility compression which coincided with a breakdown from its rectangle chart pattern. Price broke down below its 20MA and 200MA, adding higher probability to our bearish thesis. Those that held beyond the price target were handsomely rewarded. 

A-Mark Precious Metals (AMRK)

  • Chart Pattern Length: 23 weeks
  • Days To Reach Price Target: 3

AMRK is one of our biggest winners of the year. Traders that held past the price target received $30/share in profit on the trade.

Notice that the stock breaks out above 20MA and 200MA without seriously testing our stop-loss placement. Then the stock rides the 20MA without breaking below that line until August 2020. 

Dermtech (DMTK) 

  • Chart Pattern Length: 77 weeks
  • Days To Reach Price Target: 3 days

DMTK was an interesting play. Look at the first two tests of the support boundary. Notice how the stock traded below the support line then closed either at or above the line. This shows buyers are willing to pay at that price. The stock broke out above the 20MA and 200MA and never tested the stop-loss placement. 

Tobii AB (TOBII)

  • Chart Pattern Length: 14 weeks 
  • Days To Reach Price Target: 12 

TOBII broke out of its 14-week rectangle reversal base and never retested the chart pattern. The stock closed with a strong bullish candle, retraced for two days, and rocketed higher. Those that held past the price target were handsomely rewarded. 

New York Times (NYT)

  • Chart Pattern Length: 10.6 weeks
  • Days To Reach Price Target: 9

NYT broke out of a volatile rectangle pattern. The pattern formed in 11 weeks and closed with a strong daily bull bar. The stock never looked back and rode the 20MA to the price target (and beyond).

Epiroc AB (EPI_A)

  • Chart Pattern Length: 11 weeks
  • Days To Reach Price Target: 22

EPI_A is another testament to the power of a stock respecting its 20MA. After a minor retest of the chart pattern boundary, EPI rocketed to its price target in only 22 days. Those that held after the price target generated even greater returns. 

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