TREE
As noted in my previous post on LendingTree (linked) this is a patient trade that requires a trader to display discipline and belief in the trading plan. The accumulation zone was noted as 285-270 in previous post, and this week TREE hit sub 285 for the first time on the pullback in formation of a true cup and handle pattern. I say "true" cup and handle because that--along with head and shoulders--are the most misused patterns I notice on this site. The true cup and handle is a continuation pattern that should occur at the top of an uptrend, and the handle portion should retrace about 2/3 of the cup depth. So, if you are looking to add to or get in TREE, I say now is the time. The handle bottom should coincide with the uptrend support line and the 125 moving avaerage, which this stock respects. First target will be 450ish, with the very real possibility of this stock ending up well over 500 in the next few years, macro conditions permitting. Happy hunting and GLTA!!
