Best Chart Patterns: Resistance Breakout

Within this article we discover the Resistance Breakout, one of the most effective Chart Patterns as shown in the example where a company has grown by over 280% in a few months.

In addition, we will find out how to be informed every day on which companies show this important chart pattern.

Resistance Breakout

Resistance is a price level within a positive trend in the stock price that stops growth and does not allow for continuation, so it is an obstacle.

In order for the stock price to continue growth it must overcome this obstacle, i.e. reach a price level above the resistance.

So knowing which companies have just overcome this hurdle and are ready to continue growth is very useful information.

Precisely for this reason within the BullDude.com Membership you will find every day an article called “Resistance Breakout” containing the best companies that have just overcome this obstacle.

Pinduoduo Inc (PDD): Resistance Breakout

In the image above you find an example of this type of article called “6 Stocks Breakout a Resistance Today” published on 9 May 2020 here on BullDude.com where the Chinese company Pinduoduo (PDD) was reported because it had just overcome a resistance (black line) and in 2 months the price increased by 80%, going from $ 54 to $ 98.

In mid-February 2021, the price of Pinduoduo (PDD) reached $ 212 per share (+ 280%).

Potential Breakout

In addition, every day within the BullDude.com Membership you will find an article called “Potential Breakout” containing companies that have not yet overcome this obstacle (Resistance) but have a chart structure that increases the chances of doing so in subsequent trading sessions.

Fiverr International (FVRR): Potential Breakout

In the image above you find an example of this type of article called “Potential Breakout: 4 Interesting Stocks To Watch” published on June 18, 2020 here on BullDude.com where the company Fiverr International Ltd. (FVRR) was reported because it showed a good chance of overcoming the resistance to $ 73 (black line) in subsequent trading sessions. In fact, it did it in just 5 days and the price went from $ 68 (on the day the article was published) to over $ 122 (+ 80%) in the next 2 months.

In mid-February 2021, the price of Fiverr International Ltd. (FVRR) reached $ 335 per share (+ 380%)

The Resistance Breakout and Potential Breakout articles can be found every day within the BullDude.com Membership in the Chart Patterns category along with 3 other types: Moving Average Breakout, Buy The Dip and New All-Time High.

Moving Average Breakout

Moving averages are one of the most used tools in trading because they allow you to identify the presence of a positive or negative trend based on the position of the stock price with respect to it. One of the most important moving averages is the one calculated as the average price of the last 50 trading sessions and if the price is above it (or below) it indicates the presence of a medium-long term positive (or negative) trend .

So knowing which companies have just moved from a negative to a positive trend (so the price has moved above the 50-day moving average) is very useful information.

Within the BullDude.com Membership you will find an article called “Moving Average Breakout” every day containing the best companies that have just entered a positive trend, ie the price has moved above the moving average.

Snap Inc (SNAP): Moving Average Breakout

In the image above you find an example of this type of article called “4 Stocks Breakout a Key Moving Average Today” published on April 22, 2020 here on BullDude.com where Snapchat (SNAP) was reported because the price had reached $ 17 exceeding the moving average of 50 days (black line). Since that day, Snapchat (SNAP) has grown by over 55% in the next 3 months to over $ 26.

In mid-February 2021, the price of Snapchat (SNAP) reached $ 73 per share (+ 330%).

Buy The Dip

The Buy The Dip is a particular chart conformation that allows you to take advantage of the temporary drop in the price of a financial instrument to be able to make an investment at a lower price than in the previous days / weeks.

Generally, the Buy The Dip can be exploited when the financial instrument is within a positive medium-long term trend and for various reasons (including not directly related to the instrument but linked to general market collapses) it suffers a temporary drop in price before resuming growth following the positive underlying trend.

Although investing in a financial instrument in a positive trend at a lower price than in recent weeks has a lower risk than one in a negative trend and on the maximum price, there is still a risk on this chart patterns that concerns the possibility that the temporary drop lasts more than expected and the underlying trend changes from positive to negative.

So this chart patterns in order to exist needs the following components:

  • Medium-long term positive trend that in this type of article is identified when the current price is higher than the average price of the last 200 trading sessions (black line in the charts).
  • Temporary drop in price which in this type of article consists of a minimum drop of at least 10-15% from the maximum reached in the previous days / weeks.

So knowing which companies have just taken a break from a strong positive trend is very useful information.

Precisely for this reason within the BullDude.com Membership you will find almost every day an article called “Buy The Dip” containing the best companies that have just showed this chart patterns.

Apple Inc (AAPL): Buy The Dip

In the image above you will find an example of how many temporary drops in price there were during the positive trend of Apple Inc (AAPL) from May 2020 to October 2021 period in which it grew by over 100% reaching a market capitalization of 2, 5 trillion dollars.

New All-Time High

When a company’s stock price continues to rise and reaches a new all-time high it means it has reached the highest market value in its history. For example, Apple Inc (AAPL) currently has a market value of over $ 2 trillion, but before it can reach it, it has continuously recorded new all-time highs over the past few years, rising from a value of 1, 10, 100, 1000 and now over $ 2 trillion.

For this reason, reaching a new all-time high is very important because it means that the company is continuing to grow as a market value.

So knowing the companies that have just hit a new all-time high is very useful information.

Precisely for this reason within the BullDude.com Membership you will find every day an article called “New All-Time High” containing the best companies that have just reached a new all-time high and are therefore continuing to grow reaching market value never reached previously.

PayPal (PYPL): New All-Time High

In the image above you find an example of this type of article called “10 Stocks to a New All-Time High | May 5” published on May 5, 2020 here on BullDude.com where the payment giant PayPal (PYPL) was reported because it had just reached a new all-time high of $ 125 per share (exceeding the red line which represented the previous all-time high). Since that day the company has continued to grow reaching $ 210 in the following 4 months (+ 68%).

In mid-February 2021 PayPal (PYPL) reached a price of $ 308 per share (+ 145%).

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