In this article, we make the point that investing in 2023 looks really good because of the powerful bullish reversals on the charts. However, this visual insight is only to those that are focused on charting and analyzing opportunities. The investing experience appears to be very different, because long consolidations (which is what reversals in essence are) feel uncertain to the vast majority of investors. In this article, we present 10 powerful bullish reversals, all of them are in a different stage but are equally bullish and, to some degree, equally powerful.
The bullish reversals we will look at are meant to educate our readers about how to look at charts. The intention is to separate feeling and experience from the fact. As said many times, START WITH THE CHART, it will help tremendously to bring in perspective into the investing experience.
Orderly bullish reversals
The first chart is one that we used in recent weeks to make the point about long and slow reversals being very bullish: we initially mentioned it mid-August in this article Lithium Market: A New Booming Trend In 2023 And 2024? This is what the bullish reversal on the chart looked like about 2 months ago.
Below is how this bullish reversal resolved. We wrote about it in this article, about a week ago: This Hidden Gem Lithium Stock Exploded, Introducing A Big Trend In The Lithium Market.
Learning: the experience of this type of reversal is ugly to most investors, they cannot stand it especially if some other markets or stocks are rising.
Tip: practice charting so you can see the outcome before it happens.
Here is another orderly bullish reversal, below. We want to focus on the educational part in public posts, while the specific symbols are shared in the premium services, obviously. The symbol of this stock is instantly available in our latest weekend analysis: The Market Is Coming Our Way >>
For those in need of chart annotations, we have added annotations to the stock shown in the chart above. What is particularly noteworthy is how the multi-year falling trendline intersected with the critical 50% retracement level just one week ago. In terms of timeline, there is a remarkably potent bullish signal, albeit somewhat concealed. We have identified a specific day (marked by the yellow vertical line) that is expected to usher in a bullish outcome. As observed, the bullish resolution is nearly confirmed, typically occurring within a span of three days following the yellow line.
Very long term bullish reversals
The next chart is one on the weekly timeframe, over 12 years. What you see is a cup-and-handle type bullish reversal. This is extremely powerful, as the target of this bullish reversal is at least 200% higher.
Reversals testing epic support
A completely different bullish reversal setup is one where an epic test of support is occurring. In charting terms: an epic support structure is being created.
The chart below is one of the most powerful reversals with at least 3x upside potential.
Similarly, epic support is being created in this gold mining stock, on May 3d, in The Safest Gold & Silver Chart Setups And A Heads Up Alert. While the consolidation might feel horrible, it helps tremendously to create bullish power. In a way, the horrible feeling is the pre-requisite for bullish power.
Another variation of the creation of an epic support structure is this chart, an absolute beauty, provided the recent lows will hold.
In the same sector, as the chart above, we find the next bullish reversal which is a mix of epic support with a double W (double bottom).
Bullish reversals with a confluence of support structures
The last of type of bullish reversals we observe in 2023 are the ones where the support structure is made up of multiple supports, say a confluence of support.
The AI & Robotics top pick, in our Momentum Investing portfolio currently, is testing triple support: a chart pattern (inverted H&S), multi-year rising channel, 68.2% retracement level. This is an insanely bullish reversal, provided this support level holds.
Also in our Momentum Investing portfolio currently is this AI & Robotics stock, one that has tremendous potential because it is testing triple support: 50% & 38.2% retracement level, long term rising channel, and also an harmonic price/time state (purple circles, which typically represent turning points for this stock).
Somehow similar, although not as ‘sophisticated’ as the previous two bullish charts, is the reversal on this top pick in our AI & Robotics chartlist.
Check our must-read weekend analysis in which almost all 10 bullish reversals featured in this article were explained and called out: The Market Is Coming Our Way >>
