As of 08/12/2022
  Indus: 33,761 +424.38 +1.3%  
  Trans: 15,147 +74.16 +0.5%  
  Utils: 1,042 +15.91 +1.6%  
  Nasdaq: 13,047 +267.38 +2.1%  
  S&P 500: 4,280 +72.88 +1.7%  
YTD
-7.1%  
-8.1%  
 +6.2%  
-16.6%  
-10.2%  
  Targets    Overview: 07/28/2022  
  Up arrow34,500 or 31,850 by 09/01/2022
  Up arrow16,300 or 14,300 by 09/01/2022
  Up arrow1,075 or 990 by 09/01/2022
  Up arrow13,600 or 12,000 by 09/01/2022
  Up arrow4,325 or 4,000 by 09/01/2022
CPI (updated daily): Arrows on 7/15/22
As of 08/12/2022
  Indus: 33,761 +424.38 +1.3%  
  Trans: 15,147 +74.16 +0.5%  
  Utils: 1,042 +15.91 +1.6%  
  Nasdaq: 13,047 +267.38 +2.1%  
  S&P 500: 4,280 +72.88 +1.7%  
YTD
-7.1%  
-8.1%  
 +6.2%  
-16.6%  
-10.2%  
  Targets    Overview: 07/28/2022  
  Up arrow34,500 or 31,850 by 09/01/2022
  Up arrow16,300 or 14,300 by 09/01/2022
  Up arrow1,075 or 990 by 09/01/2022
  Up arrow13,600 or 12,000 by 09/01/2022
  Up arrow4,325 or 4,000 by 09/01/2022
CPI (updated daily): Arrows on 7/15/22

Bulkowski's Semtech (SMTC) Trading Quiz

Released 3/31/2022.

SMTC: 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

Both horns and pipes appear on the weekly scale. I didn't pay any attention to the open or close price levels, just the spike length. Pipes are two weeks of parallel price action surrounded by prices that are well below the pipe tops. Horns are the same only there's a week in between. You'll find that pipe bottoms can be a very good performing chart pattern.

Continued on next slide.
2 / 4
chart pattern

This chart is on the weekly scale. Notice the price scale. The stock dropped from 117 to 15 in about 4 months. This chart is a good example of what a trade can do to your wallet if you don't have an exit strategy.

What chart patterns can you find? Look for the following (if you find others, great!): 5 horns (1 top, 4 bottoms), 12 pipes (5 tops, 7 bottoms), and 2 double tops.

The answers are on the next slide.
3 / 4
chart pattern

P are for pipes, H are for horns, EE is an Eve & Eve double top, AA is Adam & Adam double top.

Price has confirmed the horn bottom in March.

Question 1: Do you buy, short, or avoid trading this stock?
Question 2: What is your price target?
Question 3: What is your stop loss price?
See the next slide for answers.
4 / 4
chart pattern

This chart is on the weekly scale. The green line separates new price action from the old stuff. I show the potential resistance zones as blue lines. Prices in early 2005 formed a descending triangle that made noises about breaking out upward. In any case, the horn bottom (in 2003) turned into a wonderful buy signal as the chart shows.

Answer 1 (buy?): The horn bottom says buy.

Answer 2 (target?): Use the measure rule for horns. Take the height of the pattern and add it to the top of the pattern. In this case, I'd use overhead resistance to tell where price is likely to stall or reverse. The Adam & Adam double top (AA) in November may cause a pause or reversal. If price can rise above that, then a stall at 23 to 25 looks more certain. I show that zone as the parallel blue lines. That's the site of bottoms in March to May 2001. However, if price does rise to the AA double top, it would confirm an ugly double bottom (the bottoms in October and December 2002), suggesting a further price rise.

Answer 3 (stop?): Place a stop below the horn low. That may be too far away for such a low priced stock. If so, then consider placing a stop below the red line, formed by several weeks worth of flat prices.

The End.

See Also

 
Top of page
 

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notices: "As an Amazon Associate I earn from qualifying purchases." Paid links).

My novels:  Bedroom to Boardroom bookBedroom to Boardroom book Remember Me bookRemember Me book Bumper's Story book Head's Law book

Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of chart patterns book Encyclopedia of Chart Patterns 3rd Edition book Trading classic chart patterns book


Copyright © 2005-2022 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.
Home Advertise Contact Donate Links Privacy/Disclaimer