Why Blink, Carnival And Plug Power Stocks Are Holding Strong Through General Market Turbulence

Blink Charging Co BLNK, Carnival Corp CCL and Plug Power Inc PLUG have developed inside bar patterns on the daily chart. An inside bar pattern indicates a period of consolidation and is usually followed by a continuation move in the direction of the current trend.

An inside bar pattern has more validity on larger time frames (four-hour chart or larger). The pattern has a minimum of two candlesticks and consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles. The subsequent candle(s) must be completely inside the range of the mother bar and each is called an "inside bar."

A double or triple inside bar can be more powerful than a single inside bar. After the break of an inside bar pattern, traders want to watch for high volume for confirmation the pattern was recognized.

• Bullish traders will want to search for inside bar patterns on stocks that are in an uptrend. Some traders may take a position during the inside bar prior to the break while other aggressive traders will take a position after the break of the pattern.
• For bearish traders, finding an inside bar pattern on a stock that's in a downtrend will be key. Like bullish traders, bears have two options of where to take a position to play the break of the pattern. For bearish traders, the pattern is invalidated if the stock rises above the highest range of the mother candle.

The Blink Chart: Blink's stock is tightening into a descending triangle pattern and holding above support at $28.39 where it created a bullish double bottom pattern on Sept. 20 and Sept. 27. 

The Carnival Chart: Carnival is trading in an uptrend on Tuesday and was consolidating with an inside bar pattern. 

The Plug Power Chart: Like Carnival, Plug Power is trading in a strong uptrend and on Tuesday was consolidating Monday's 5% rally with an inside bar. The stock has resistance above $28.80, which will need to be broken for a move higher. 

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