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3 Stock Charts Forming Double-Bottom Patterns


The charts of MasterCard, Amazon, and Keurig Green Mountain all show short-term double-bottom patterns forming after a recent market pullback.

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In uptrends, I prefer to step up and buy weakness in addition to market strength. Doing this requires patience and discipline. When a market (or stock) pulls back, it is imperative to be patient and wait for a bottom (or top) to form rather than blindly try to pick a top or bottom. The key component in both a bottoming and a topping process is time. Remember that both bottoms and tops require time to develop. They also require a pattern to emerge. Only then am I able to identify a favorable risk-to-reward entry point.

In addition, keep in mind that most bottoms and tops are short term in nature; it is rare to see major bottoms form like they did in October 2002 and in March 2009 and to see major tops form the way they did in March 2000 and in October 2007. Since most bottoms and tops are short term in nature, here are three charts -- those of Mastercard (NYSE:MA), Amazon (NASDAQ:AMZN), and Keurig Green Mountain (NASDAQ:GMCR) -- that show short-term double-bottom patterns forming after the recent market pullback that occurred in the first half of April.

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Keurig Green Mountain
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