BullishWolf
Long

Symmetrical Triangle Bullish Breakout - AKRX

NASDAQ:AKRX   AKORN INC
There appears to be a bullish breakout from a 3 month symmetrical triangle on AKRX             . This looks like a textbook breakout (Lower highs & higher lows converging.) A symmetrical triangle alone is a neutral consolidation pattern - only until it breaks one of the trendlines does it signal direction. The price has not only broken the upper trendline, but has spent two days outside of the triangle. To me, this is definitely a bullish signal. Unfortunately, there has not really been a substantial pickup in volume , which usually accompanies the breakout. However, both the 13 & 21 EMA crossed the 50 day EMA today, indicating an uptrend. With a projected risk-reward ratio of 3, this looks like a promising trade.

Summary
Position: Long. Why?
- Bullish symmetrical triangle breakout combined with a 13, 21, & 50 EMA cross.
Risk Management:
- Stop-loss: $37.5 (7%)
- Profit-taking: $51 (25%) Why?
-- Following triangle measuring technique, a gain of 11 points is projected.
- Risk-reward ratio: 3.667

Related Ideas

Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out