I like patterns, but they certainly are not infallible. Earlier this week, the relatively new stock Fastly (symbol FSLY) was sporting a fantastic-looking pattern, including a new lifetime high. It’s just the kind of stock you would want to own. Supposedly.
Fast forward to earnings. Let’s just say the pattern was blown to pieces.
Does this mean patterns are useless? Certainly not. Does it show how it’s important not to risk too much in a single stock? Yes indeed. Is this the end of my rhetorical questions? Absolutely.