Pop Drop and Chop Pattern in UA

[Steven Place]

After a parabolic move above 80, the stock saw a swift correction down to 75. It has now established a new range, and if it clears resistance at 78.50 it should go and fill the gap at 80.50 and then maybe a break to new 52 week highs.

 

I like the November 80s (we’re now to a point where October is getting a little close to opex, so I want to go further out). A stop under 77.30 would be aggressive and makes sense, and you could also use the ascending trendline and place a stop under 76.50– if you are worried about getting shaken out, use the wider stop and lower position size.

[Steven Place]

After seeing a great breakout and 2nd day followthrough, the stock is gapping down back to key pivot level at 78.50. If it looks to close under that level, then exit out of your trade.

[Steven Place]

The 78.50 level held, and now the stock has run into its recent high:

Take 1/2 off here and move stop up to 79.

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