Daily Market Report

Standard Motor Products Inc forms bullish "Diamond Bottom" chart pattern
Oct 21, 2015

Recognia has detected a "Diamond Bottom" chart pattern formed on Standard Motor Products Inc (SMP:NYSE). This bullish signal indicates that the stock price may rise from the close of $36.85 to the range of $43.00 - $44.25. The pattern formed over 73 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

Tells Me: The price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation. The Diamond Bottom pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamonds boundary lines, it marks a significant reversal to a new uptrend.

This bullish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.

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