LITE - Triangle breakout heralds gains between 30% - 70%
Falling resistance and rising channel support in DARK BLUE created a symmetrical triangle after the Feb 12 all-time high. Stiff resistance was finally broken on a daily and weekly basis, after a multi-month consolidation, clearly showing that bulls are in control. All-time highs will be tested soon; if this powerful and now re-energized uptrend contiunes, then the measured move out of the triangle is 109 (blue arrow), just shy of 1.618 fib extension at 112.
Past that target, there's an interesting confluence where the mid points of TWO rising channels cross, very close to the 2.618 extension at 140 - 143 (red arrow). Which means that even if LITE were to remain permanently confined to the lower halfs of it's two rising channels, that 143 mark would be reached less than 10 months from now, for a cool 70% gain.
I'm definitively sticking with this one.
Full disclosure: currently long LITE at 0.9% of total assets with no stop. I may increase exposure on a backtest-and-bounce off falling triangle resistance, which still hasn't happened (and maybe won't).
Past that target, there's an interesting confluence where the mid points of TWO rising channels cross, very close to the 2.618 extension at 140 - 143 (red arrow). Which means that even if LITE were to remain permanently confined to the lower halfs of it's two rising channels, that 143 mark would be reached less than 10 months from now, for a cool 70% gain.
I'm definitively sticking with this one.
Full disclosure: currently long LITE at 0.9% of total assets with no stop. I may increase exposure on a backtest-and-bounce off falling triangle resistance, which still hasn't happened (and maybe won't).