Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

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
Former Post Office boss Paula Vennells hands back CBE ‘with immediate effect’
next post
How Does the Congressional Government Spending Deal Measure Up?

You may also like

Empowering Your Trading Journey: Handpicked Trading Books Every...

May 3, 2023

Down-and-Out Stocks Entering New Uptrends – These 8...

June 10, 2023

Earnings Week in Full Swing: Don’t Overlook These...

April 25, 2025

Where Are We? Can We Say This Is...

May 14, 2023

Running Up into Resistance

August 26, 2022

Will Catalysts Push Markets HIGHER or Drag Them...

January 31, 2024

It’s Not About the Crypto

February 8, 2023

Week Ahead: Ranged Movement Expected In The Truncated...

January 21, 2023

How to Chart In Multiple Timeframes Like A...

April 20, 2024

Bank Earnings: JP Morgan vs. Goldman Sachs

July 10, 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.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.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 futureretirementsuccess.com | All Rights Reserved