November 23, 2020, 12:31 pm EST
2020 Actual Trade: Ascending Base Breakout (DOW)
Dow Inc (DOW) is a Dow Jones 30 members material stock with 45 billion market capital. We were able to get this one +17% within 3 months which is a challenging task . Here are some highlights:
- Notice material sector (XLB) is among the leading sectors since March market bottom. Material kept rising from March to September non-stop
- DOW is one of the leader among mega material stocks from March to June
- Consolidation consists ascending base (higher-low) and resistance was set at 46
- By the end of ascending base, DOW crossed over 46 which triggered buying opportunity with sell-stop about 44-45
- DOW did not finish it rally straight up but made a pullback in October. However, 44-45 offered a support and strong rebound
- Then, it was a strong rally with a gap-up to its finish line +17% profits within 3 months
