They left the baby…

Chart Patterns are not always easy to interpret. But sometimes a “signal” is given when the only recognizable pattern may simply be a pullback, or a bounce off a pullback to be more precise.

That is exactly what happened this week with $SBUX. And we have seen it more and more as of late.. The pattern itself is a called a “Abandoned Baby” Personally I’m not fond of that name but I didn’t name it…

Abandoned Baby patterns occur when there is Gap on each side of a single bar. You can see it on the last down day.  What they do most often is offer a signal of a “reversal” for entry. That is if the rest of your parameters are all there. In the case of $SBUX for me they were. I went in on Tuesday the 5th. Even if it turns out to be a short term play these reversals often happen swiftly and can be profitable.  YOu can see that just today it gained over 5%.

As the market tries to maintain this current reversal upwards this pattern is something we may begin to see more and more of as the pullbacks occur. Just don’t leave the baby!!

Invest wisely, live charitably and be well….Brother Bill