The provider of premium private banking, commercial banking and niche investment management products, and services to sophisticated corporate, institutional, and high-net-worth clients, Tristate Capital Holdings Inc. (NASDAQ: TSC) seem to be poised for a price surge as per its latest charts.
Bullish Indications
#1 Falling Wedge Pattern Breakout: As you can see from the daily chart, TSC was trading within a falling wedge pattern during the past several months. This is marked in the daily chart in orange color lines. A Falling Wedge Pattern is a bullish pattern. Once the stock breaks out from it, it has the potential to move further up. Currently, the stock has broken out of the falling wedge pattern, indicating bullishness.
Daily Chart – TSC
#2 MACD above Signal Line: The daily chart shows that the MACD line (blue color) is currently above the signal line (orange color). This is a possible bullish setup.
#3 Symmetrical Triangle Pattern Breakout: The daily charts also show that a symmetrical triangle pattern breakout has occurred.
This is marked in purple color dotted lines.
A symmetrical triangle pattern indicates a period of consolidation before the price breaks out.
This is typically formed when there is an indecision in the price movements and uncertainty among the buyers and sellers.
Once a breakout from the upper trend line occurs, it usually signifies the start of a new bullish trend.
Currently, the stock has broken out of the symmetrical triangle pattern. This is a bullish sign.
#4 Other Bullish Indicators: The RSI shows bullishness, as it is currently above 50 and moving higher. The %K line is above %D in the stochastic. The Aroon Up is above 70 while the Aroon Down is below 30. All these are possible bullish signs in the daily chart.
Weekly Chart – TSC
#5 Near long-term support area: The weekly chart shows that the stock is currently moving up after taking support near a long-term support area. This area is marked as a pink color dotted line. This seems like a good level for the stock to move higher.
#6 Bullish Stoch: The stochastic is currently moving up from oversold levels and has made a bullish crossover. This is a positive sign.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, you can purchase the shares of TSC between the levels of $10 and $13.
TP: Our target prices are $16 and $21 in the next 3-5 months.
SL: To limit risk, place stop-loss at $9.10 (for entry near $10) and $11.40 (for entry near $13). Note that the stop loss is on a closing basis.
Our target potential upside is 23% to 110% in the next 3-5 months.
- Entry near $10: For a risk of $0.60, our target rewards are $6.00 and $11.00. This is an almost 1:7 and 1:12 risk-reward trade.
- Entry near $13: For a risk of $1.60, our target rewards are $3.00 and $8.00. This is an almost 1:2 and 1:5 risk-reward trade.
In other words, this trade offers nearly 2x to 12x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down from the falling wedge pattern with a high volume. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
Tara
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