Hi Shoppers,

Did you know there’s a new holiday out?

It’s called Inverted Hammer Sunday.

And we’re celebrating it today!

Check it out …

An inverted hammer is found at the bottom of a downtrend and could potentially be signaling an end to the trend. 

It looks like this:

It is an upside down hammer, which could be telling us there is a break in the selling.

This candlestick is formed when the stock opens lower and trades lower – but at some point during the session, the buyers were able to take charge, creating the long upper shadow.

As always, wait for the confirmation of a higher opening the following day.

And before you want to hop in and go long, wait for the stock to trade above the high of the inverted hammer.

Also, use the low of the inverted hammer for your stop loss.

Hammer Down

Here is the inverted hammer I am seeing in Chargepoint Holdings (Ticker: CHPT):

As you can see, CHPT has come down from the high of $20.99 on April 4 to a low of $14.32 on Friday.

I will be watching for it to open and trade higher on Monday.

Once it trades above $15.16, I will look to buy the May 6 15 calls.

The first place of resistance I am seeing, will be $16.75 then $17.50.

Place your stop loss at the low of Friday, $14.32.

Questions about any of that? Email me! Or drop a comment below!

Thanks for Reading … See You Next Tuesday!

Licia Leslie