Double Top Trading OpportunityHowmet Aerospace Inc.BATS:HWMTopChartPatternsHowmet Aerospace: Double Top Trading Opportunity When volatility compresses into a tight range after a powerful rally, traders start looking for continuation or reversal patterns to frame high-probability setups. In the case of HWM , the daily chart is currently showing a clear Double Top formation near the $193 level. Why the Double Top Matters A Double Top is one of the most recognizable chart patterns, and it's NOT a reversal pattern. In fact, could act as both and that's why I put a buy and a sell at the same time. It signals indecision, buyers are struggling to push above resistance while sellers defend the level. Once a breakout occurs, momentum traders step in aggressively, which often leads to strong directional moves. With HWM , this setup is especially interesting because: The rally has been extremely strong, fueled by robust aerospace demand and solid earnings growth. Volume profile shows large gaps between clusters, meaning price can move quickly once a breakout confirms. Previous fake breakdowns were quickly rejected, reinforcing bullish sentiment and trend continuation. Breakouts Only The range inside the Double Top is too small to justify range-trading. Risk/reward improves significantly when waiting for a confirmed breakout, either upward (continuation) or downward (trend pause/correction). -> Bullish Scenario : If HWM closes decisively above $193, the Double Top becomes invalid, and the breakout could trigger a sharp continuation. The first target stands at +14%, supported by momentum and volume gaps. -> Bearish Scenario: If HWM breaks below $170 with conviction, the Double Top pattern activates. This could open a swift move to the downside, with a measured target of -14%. Risk Management Once a breakout occurs, the recommended Stop Loss is only 4% from entry, keeping risk tightly controlled relative to the 14% profit target. This creates a highly favorable 3.5:1 reward-to-risk ratio, which is ideal for traders. ✴️ Want more trade setups and step-by-step guidance on making fast short-term profits? Subscribe now to my free newsletter in my profile!