TA, what do the charts tell us now. Here are two charts that support my analysis and suggest with time lines expressed with CRE’s Dr.Habers appearance at the Benchmark Conference on April 26th in Toronto, that we could have some long anticipated news coming our way.
Attached below two charts, 21 day 30 min and a 3 month daily two hour chart.
Since we don't have the luxury of sitting down with management teams, our approach must focus on "hearing the story" from the charts rather than the management teams - and that's exactly what I’d like to do. (Elliott wave theory.)
Based on what we see and what we hear, they reposition themselves into stocks with strong stories and out of stocks that are likely to disappoint.
Relative strength and PPO holds the key! All indicators short term and long term 21 day to 4 year charts reaching a point of tightening and volume decreasing, pointing to an imminent break out within a couple of weeks.
Note: On the 3 month chart since the beginning of April it started out as a symmetrical triangle, upper red and green dashed line. Now it is clear we have transitioned into an upslope triangle which should resolve in the next few weeks.
Both symmetrical and upslope triangle are supportive of a continuation. Here are the definitions.
While both the symmetrical triangle and the pennant are continuation patterns with a good degree of reliability, there are two key differences between the two in terms of their formations. KEY TAKEAWAYS
- A symmetrical triangle is a chart pattern characterized by two converging trendlines connecting a series of sequential peaks and troughs.
- Pennants are continuation patterns where a period of consolidation is followed by a breakout.
- The two differ by duration and the appearance of a 'flagpole'
With permits in hand enjoy the ride.
Happy Easter everyone.
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