‘Tis the clean bull retracement pattern
Baxter (BAX) made our weekend Scouting Report because of its textbook bull retracement pattern. Let’s break 6 reasons why.
One: Its daily uptrend made a higher pivot high last week, showing trend continuation.
Two: Momentum increased during the last advance, reflecting a trend growing in strength.
Three: A four-day retracement returned prices to support near the 9 EMA and 20 SMA.
Four: Volume patterns in recent weeks show steady accumulation beneath the surface.
Five: After multiple quarters of negative earnings responses, we finally got a bullish reaction to earnings.
Six: The reward-to-risk ratio is well over two to one.
A trigger over Friday or Thursday’s high could signal the next upswing has begun.
Chart of the Day: BAX
Resistance near $48 and the 200-day moving average at $50.40 beckon as two upside targets.
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