starsearcher40 wrote: This is truly one of the nicest chart plays I've seen, and truly is a classic setup.
Lets say the run started at $10.65 last Friday.
The push was to the $11.80 level. Wen've now spent the last to days in a ever-tightening pennant formation towards the $11.80 level. If you want to be sepcific, take the last two days, and draw a horizonal line at the $11.80 level. Now go back to last Friday, and on the underside of the start of the run point, to the $11.80 level, where it is almost trading. Now, just for curiosity, draw another separate line from the $11.20 touchback yesterday, up to the current (almost) $11.80 level. You can lterally see the stock coiling to the $11.80 level, with each retracement being less and less.
Now what else is interesting in the chart formations, is that the $11.80 level will move likely represent 50% of the OVERALL run. So $10.65 to $11.80 is $1.15 gain so far. Tack the same $1.15 on to the $11.80 level, and you get $12.95, which is almost exactly where the next resistance point shows up.
Breakout of the $11.80?? Absoutely imminent. I don't care if it's today, or tomorrow. It is fully set up to happen, and for the run to resume.
For those interested in some of this t.a. stuff, look up Fibonacci. IT's all quite mathematical, but Fibonacci shows up throughout nature, and also applies to stocks (Fib Retracements.) . Here's a good place for a little light reading if interested.
Click here