15 Jan

Breakout Pattern Explained – Blue Apron (APRN) Trade


Another Day… Another Dollar

While stocks are enjoying a nice rally today after some decent earnings and positive news out of China… we were feasting before it was even lunchtime… banking on penny stocks of all things.  

I’m up about $80K in trading profits this year. But most importantly, many of my clients are starting to turn the corner now.

Jan 15, 10:42 AM SK: JB nice call on APRN + $775 for me

Jan 15, 11:01 AM KC: Thanks Jason. Banked $989 on APRN

Jan 15, 11:03 AM DD: Out APRN up 23.8%

Everyday, I look for specific patterns in stocks (if you don’t what they are, watch this) that have a proven edge. However, that is just the beginning of my process. What really pushes small-cap stocks higher is the catalyst.

Catalysts: I have 3 pillars – patterns, values, and catalysts – and today we’re going to delve deeper into why catalysts and patterns are important. Now, catalysts are events that could move a stock, such as corporate actions, analyst comments, company news, or a breakout of a key area. Patterns help with timing my entries, and catalysts are what drive my profits.

That said, not all catalysts are the same. Some turn out to be duds… while others, like what happened today in Blue Apron Holdings (APRN), turn out to become monster winners.

breakout pattern - blue apron

What I’m going to show you next, is how I yanked out $13K in trading profits before lunchtime. Now, I’m not doing this to brag. Instead, I want you to see how easy this can be. That is, once you get out of your own way and start believing in the process.

Breakout Pattern Trade Example

You might be wondering how I was able to spot this trade in Blue Apron Holdings Inc. (APRN)… well, I trusted my pattern.

Check out this daily chart of APRN, and where I bought and took profits.

breakout pattern - aprn

Now, this stock has actually been on my radar for nearly a month. It had a tough time really breaking out above the $1 area and staying above it in late December.

However, when I saw it come back above $1… I figured this stock could potentially breakout. The stock was making higher lows, indicating there was a high probability it would break above $1.15.

breakout pattern - blue apron

This is what we call an ascending triangle. Now, if you don’t know what this pattern is, make sure to check out this trading playbook.

If you look at the chart, you’ll notice the stock gapped up and broke out.

You might be thinking, “How’d you know it would gap up?”

Well, I don’t have a crystal ball that tells me what will happen. I just spot my patterns, develop a plan, and fire away. A lot of the times, catalysts come into play with these patterns, so I know have to be positioned.

What was the catalyst that sent this higher?

Blue Apron Holdings announced it could achieve profitability on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis for the 2019 fiscal year. In other words, the company was projecting positive cash flow. Moreover, the company will be discussing its partnership with Weight Watchers, as well as other strategies to drive growth, in its earnings conference call at the end of January.

Once this news was out, I alerted members in the Millionaire Roadmap community about my plan:

I created a plan, stuck with it… and I’ve already locked in $13K in APRN.

The hot streak continues.

Now, just because I’m not in this trade anymore, it doesn’t mean I won’t keep this on my watchlist. If this stock builds momentum, there could be many more catalysts, such as institutional investments.

The more you learn about stocks and the patterns I trade… the more you’ll see the same stocks pop up. This is a good thing, because after some time, you’ll start to understand their characteristics, the key levels, and which catalysts drive them.

If you’re ready to get started, and want to learn while you earn, join me behind the velvet rope. 

The diary of a real $ trader

Jason Bond

P.S. It takes a lot of courage to fire your broker and take control of your finances. After nearly losing it all, Petra Hess decided that was enough. She’s gone on to make over $2.6M in trading profits.  Join her this Thursday, January 17, at 8 PM ET.


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