22nd Century Group Inc (XXII)

[Sendme]

Hi biotech2, I am just the opposite of you. LOL I don't know much about the company or what it does. So please don't trade based on my "style". With that being said, I like to trade off of chart patterns. This stock has a history lately of trading inside of the triangle/wedge. But yes at some point it will break that pattern.

I would imagine that pattern traders will tighten up their stop losses around that area and take profits. I personally try to watch the moving averages on daily and weekly charts. My belief is that the price will not travel very far above all the moving averages unless they are properly lined up (see chart).

I personally just noticed this stock and since it is close to the top of the pattern, I did not buy just yet. I am waiting to see if the price either breaks out of the pattern and holds above the top trend line, or if it does pull back, I want to see the moving averages start to act as support (see chart). I don't like to chase a stock.

Sorry for all the charts, I just don't like posting to the moon stuff without any technical proof to support it. After a big move down in a stock, it is common for it to consolidate for 6 months to a year in some form of pattern bouncing from the bottom moving average to the top moving average and back several times. IMHO

One thing I have learned is when trading a stock that has potential, it is best to keep a core position just in case a breakout does happen and flip another position inside a possible pattern, until it looks like things are starting to line up with the MA's. A lot of pattern traders will only trade the break out of the pattern, that is when the stock will really take off.

Best of luck on your trade. Hopefully I will join you soon!


This is the weekly chart


Another example of the pattern trading style would have been these options in the past


Another technical indicator.