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 Rockwell Collins Trading Quiz

 

Released 7/19/2021.

COL: 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: descending scallop, 2 ascending triangles, and head-and-shoulders top (has a tall head).

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

The ascending triangle (far right on the chart) has broken out upward.

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?): Buy because the breakout is upward.

Answer 2 (target?): Try this approach. For the ascending triangle, draw a line (D) parallel to the bottom triangle trendline (C) beginning at the start of the top trendline, like that shown in the figure. When the line hits the date of the breakout, the value of the line is the target. It shows a price of almost 38.

Answer 3 (stop?): I think point A in the chart at the top of the page is too close (4% loss). I would opt for point B, a potential loss of 8%. Volatility is $0.93, so a stop no closer than 33.49 would be wise. That also means B is a better choice than point A.

After throwing back, the stock continued upward until peaking and it's now coming down (F). Price reached the target (blue line) at E.

Question: Do you hold onto an existing position or sell?

My answer appears on the next slide.
4 / 4
chart pattern

My answer: Would I sell? Probably not. I would expect the triangle's apex to support price (as well as the top of the triangle (line A)). At the apex where the two triangle trendlines merge, it's often a turning point for price and in this case, it's a support region. So I'd expect a reversal at F. Combined with the price bar being a bullish spike, that would also encourage me to hold longer.

Surprise! Price climbed to almost 50.

The End.

See Also

 
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My novels:  Bumper's Story Head's Law

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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