As of 09/15/2021
  Indus: 34,814 +236.82 +0.7%  
  Trans: 14,420 +134.87 +0.9%  
  Utils: 925 +0.27 +0.0%  
  Nasdaq: 15,162 +123.77 +0.8%  
  S&P 500: 4,481 +37.65 +0.8%  
YTD
 +13.7%  
 +15.3%  
 +7.0%  
 +17.6%  
 +19.3%  
  Targets    Overview: 09/15/2021  
  Up arrow35,600 or 33,800 by 10/01/2021
  Up arrow15,400 or 14,000 by 10/01/2021
  Up arrow965 or 905 by 10/01/2021
  Up arrow15,600 or 14,700 by 10/01/2021
  Up arrow4,650 or 4,350 by 10/01/2021
CPI (updated daily): Arrows on 9/15/21
As of 09/15/2021
  Indus: 34,814 +236.82 +0.7%  
  Trans: 14,420 +134.87 +0.9%  
  Utils: 925 +0.27 +0.0%  
  Nasdaq: 15,162 +123.77 +0.8%  
  S&P 500: 4,481 +37.65 +0.8%  
YTD
 +13.7%  
 +15.3%  
 +7.0%  
 +17.6%  
 +19.3%  
  Targets    Overview: 09/15/2021  
  Up arrow35,600 or 33,800 by 10/01/2021
  Up arrow15,400 or 14,000 by 10/01/2021
  Up arrow965 or 905 by 10/01/2021
  Up arrow15,600 or 14,700 by 10/01/2021
  Up arrow4,650 or 4,350 by 10/01/2021
CPI (updated daily): Arrows on 9/15/21

Bulkowski's ConAgra Foods Trading Quiz

 

Released 7/15/2021.

CAG: Quiz

Below is a slider quiz to test your trading ability. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.

 

1 / 4
chart pattern

What chart patterns can you find? Look for the following: small ascending scallop, unconfirmed head-and-shoulders top, triple bottom, cup with handle.

Answers are on the next slide.
2 / 4
chart pattern

I show the cup with handle that connects the two peaks in April and late December (the left shoulder of the head-and-shoulders top). Price broke out upward of the handle when price closed above the left shoulder high. Then price stopped rising at the head and retraced. I've seen this behavior in cups lots of times (but it happens in other chart patterns, too).

Question 1: Do you buy, short, or avoid trading this stock?
Question 2: If trading this one, what is the target price?
Question 3: If trading this one, what is the stop price?
The answers appear on the next slide.
3 / 4
chart pattern

Answer 1 (buy?): Wait for price to close below the head-and-shoulders armpit - the valley between the head and right shoulder before shorting the stock.

Answer 2 (target?): Measure the height from the head to the neckline directly below the head and project that downward from the right armpit to get a target price.

Answer 3 (stop?): Place a stop at the right shoulder high.

At the base of the ascending scallop is a small knot of price movement. I would expect price to stall here (see the above chart as "Small support zone here."

Since a quick decline often follows a quick rise (with a pause in between where chart patterns form as reversals, typically diamonds), I would expect price to eventually return to the low at A after the quick rise to B.

If that didn't hold, then I think the low of the triple bottom would support price. I show that as the "Big support zone here."

The next slide shows what happened.
4 / 4
chart pattern

The A support zone at the base of the ascending scallop didn't even slow the decline.

Support at B held up better. Price bounced upward in March 2005 but rounded over and found support near C.

C supported price at a slightly higher level than I expected, forming an ascending triangle. Support and resistance isn't one price but a zone or area of support or resistance, such as this example shows. The ascending triangle broke out downward, warning anyone still holding onto the stock that it was time to sell. Price gapped lower in early June and has found some footing in August.

The End.

See Also

 
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Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Encyclopedia of Candlestick Charts Trading Classic Chart Patterns

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