Honda (HMC) is forming a more textbook pattern right now. The automaker is currently forming a double bottom pattern, a setup that's formed by two swing lows that bottom at approximately the same level. The buy signal comes of a push above the peak that separates those two lows; in Honda's case that breakout level is $35.
Like COF, Honda is getting some extra evidence for its upside from momentum. The downtrend in RSI broke when the stock made its first bottom, and has since switched into an uptrend. That's a solid signal right now.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV