Updated: Jan 11
After seeing a clear inverse head and shoulders pattern (as seen in the blue box), a strong bullish engulfing candle at the right shoulder (depicted in the green circle), and a bullish divergence on our slow stochastics indicator, Prima Trades knew higher prices were likely to follow.
We bought ARCH on August 10th at 33.65 after prices pulled back from the 13 & 26 period EMAs.
Another reason for our confidence in this trade was that ARCH was in an uptrend on the daily chart, which means we would be trading with the wind at our backs and not fighting the overall trend. This is a very important factor when deciding whether or not a stock is worth trading.
Prima Trades sold ARCH on August 28th at 35.84 for a +6.5% profit in just over two weeks!
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