Primefocus HUGE BASE OF 18 years is about to break.

10월 14일

Hi there,
VCP Trader here again!

Hope you're having a great day. Have you ever witnessed a stock double or even triple in value? I’m sure you have! But have you ever wondered what drives such massive returns?

While fundamentals and earnings certainly play a role, I’m here to shed light on the technical side of things.

Take a look at the monthly chart of Prime Focus. The base started forming in 2006, and after 18 long years, it’s now sitting right at the top of this base in 2024. This long-term base formation is just one key factor, but how it's formed is equally important.

As illustrated in the chart, you can spot three distinct legs of the stock, with the price contracting from left to right. It's almost as if the stock has run out of room within the base. What excites me the most is the consolidation right before a potential breakout—right at the top of the base.

I believe this stock is poised for a 100% gain, and I expect it to begin its upward movement from the current zones. My target for the stock is 275.

Note: This idea will be invalidated only if we see a monthly candle closing below the third leg of the Volatility Contraction Pattern.

— That VCP Trader