My Number 1 Pattern Just Hit

After 20 years of trading I love this chart

Author

Jeff Williams
January 03, 2024

HLP hits nearly 40% overnight off my #1 chart pattern and idea from Atomic Trades on Tuesday. 

Let’s break it down…

Penny stocks are my “go to” with my small account challenge. I just love their volatility and ability to sometimes ignore border market conditions.

Today the SPY is down over $3 dollars, the IWM which tracks small cap stocks is down over $3 dollars and the QQQ’s continue to get crushed.

Yet, HLP is up nearly 40% and I shared this as my top idea yesterday to Atomic Trade members.

Trading is hard, results not guaranteed nor should be expected.

After trading for over 20 years, what was it about HLP that made me think right NOW is the time for this trade and the need to share it with members?

Well, notice the chart reversal back around December 15th, right off that $.71 cent low. The very next day HLP ran to $1.24 which was great, but it’s what happened NEXT that got my eye.

HLP pulled back to $.90 before running to $1.38. That to me is significant because the $.90 was much higher than the previous low at $.71. To me, that suggested buyers were being aggressive and buying HLP at “higher lows” than before. 

What happened next? HLP ran to $1.38 then flew to $2 area yesterday. This makes the “higher high” portion of the pattern.

So now we have a “higher high and higher low” chart pattern as bulls reverse the long downward trend from late November to early December. BOOM my bread and butter set up

Add in the strength of the SLX “Steel ETF” and you have a perfect 1-2 punch for me to alert HLP to Atomic members yesterday. 

Chart pattern ✅

Strong sector ✅

Now you can see why members love Atomic Trades. They are learning not only how to find stocks based on a scan I share with them daily, but they are also learning about scanning sectors, chart patterns and my highest conviction trade ideas.

Ready to learn as well, if so here are the details.

I’m about to go scanning for my next highest conviction trade idea for the end of the day, maybe just like HLP.

I hope to see you there with me and hundreds of others.

Cheers

 P.S. If you would like to see if you have any credits you can apply to any of my services, please reach out to Jeff Brown at [email protected] or call him at 800-585-4488.


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