Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

Breakout Or Failed Breakout: It’s Important To See The Difference

by January 9, 2024
January 9, 2024
Breakout Or Failed Breakout:  It’s Important To See The Difference

Important days for stocks usually are associated with big volume, major support/resistance, and a test of leadership. As I look at Upwork, Inc. (UPWK), it’s check, check, and check. Before I look at UPWK individually, let me show you what we typically see with internet stocks (which UPWK is a part of) during the month of January:

Throughout this secular bull market (since 2013), the DJUSNS has produced January gains two-thirds of the time. The average January performance over this period is 4.2%, which only trails the month of July. The bottom line is that internet stocks love the month of January. Outside of the opening day of 2024, stocks like META, NFLX, and PINS have already started the year off quite strong. This only adds to the odds of a UPWK rally if we see a clear breakout later today. And if we fail today, I wouldn’t write UPWK off. Rather, it’s likely to just be a delay before stronger price action arrives.

Let’s look at the UPWK chart:

Yesterday, UPWK closed at 15.66, which eclipsed the prior high candle body of 15.57. That slight breakout was also accompanied by the heaviest daily volume in two months. In my opinion, today is the day for UPWK. We gapped slightly lower at the opening bell to 15.64, but surged in very early action to 16.36, UPWK’s highest level since reaching 16.39 on September 16, 2022. Volume has very heavy out of the gate this morning. But UPWK has since reversed, losing over a buck from Monday’s high. So the question today is, “Does UPWK strengthen this afternoon to add a second straight 16-month high close or does a shooting star candle (or bearish engulfing candle) and false breakout print?” The answer to that question will likely determine UPWK’s short-term price direction. I love the clear-cut bottoming process in play here, as evidenced by reverse head & shoulders pattern, but ultimately, UPWK needs to break that neckline resistance with some momentum. Check out this potential H&S bottoming pattern:

This could turn into a big bullish afternoon reversal and breakout OR a miserable failed breakout. But it’s these types of days that I like to pay close attention to as a trader.

Finally, S&P 500 performance during the month of January has a long history of providing us excellent clues as to where the U.S. stock market is heading later in the year. If you’d like to see the impact that a strong January has on the balance of the year, and you’re not already an EB Digest subscriber, simply CLICK HERE to provide your name and email address. The EB Digest is totally FREE, no credit card information is required, and you may unsubscribe at any time.

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
Nikki Haley urges Supreme Court to keep Trump on ballot, says she will beat him ‘fair and square’
next post
Commodities Trade Analysis: Aluminum

Related Posts

Common Lessons Amongst Corporate, Sports & Investment Portfolio...

January 12, 2024

Stocks in Focus: 3 Stocks to Watch

March 22, 2025

DP Trading Room: Shake Up at Boeing (BA)

March 26, 2024

Bonds Toy with Secular Bear Market — Was...

August 20, 2023

2 Consolidating Stocks Ready To Resume Their Uptrends

April 9, 2024

Growth Stocks Shine in Short-Covering Rally

August 30, 2023

Many Reasons to Love and Hate AMZN Stock

October 26, 2023

Week Ahead: NIFTY May Stay Subdued Over the...

April 14, 2024

Capitalizing on Riot Platforms’ Potential: A Sleeper Stock...

May 22, 2024

Who will Win the Battle for the 200-day...

November 4, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Run Your Stock Portfolio Like a Pro Sports Team

    • Leadership Rotation Could Confirm Corrective Phase

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

    • 1911 Gold Temporarily Suspends Operations at True North Complex due to Bissett Evacuation Order

    • Ontario Backs Down on Key Bill 5 Provisions, Echoes BC’s Mining Debate

    • Appeals Court Grants Trump Temporary Reprieve on Tariffs, “TACO” Taunts Gain Steam

    Categories

    • Business (1,223)
    • Investing (2,503)
    • Politics (3,699)
    • Stocks (1,614)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved