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.
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