A Trade A Day

Tonight’s trade is brought to you by GT. This stock is forming a very nice double bottom. I don’t trade double bottoms as often as flags, triangles, or bases simply because they don’t form as often. But if you can find a nice one like GT is forming, they are typically very good patterns to trade.

I like the fact that volume has tapered off as the stock has formed it’s bottoms. This signals a lack of conviction on the part of sellers. Also, the second bottom was not as deep as the first. This is also positive as it is another signal of a lack of selling. What is key for the stock now is to break through resistance at $30 on good volume.

GT is a slow mover, but I like the stock anyway over $30.

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