Centrica: Will this be a H&S reversal? H&S island formed at CNA. Will there be some substantive news in the future that causes CNA to gap up as well to complete the Island reversal?
Well, as I was reading about gaps in "Technical Analysis of Financial Markets" by John J Murphy last night, I was particularly interested in the section describing the island reversal pattern as that happened to be the section I was reading (and I have wanted to learn more about gaps implications for a while). As I also observed the futures market last night and...
The chart already completed an island reversal chart pattern on April 17th when the breakaway gap occur. The retracement after the gap is expected and yesterday candle (April 26th) shows a confirmation that it is getting bullish again. Expect some minor retracement before it continue to go higher with the first price target of 0.64 by using X-X method.
Given the recent price action of AAPL, GOOG, FB and company, this should come as no surprise, but if anybody needs more convincing of the bear case, here you go.
The same pattern appeared with the CAC40 a few months ago, and just a few days ago with the Dow Jones. Let's see if this would be a magical huge short opportunity or not ...
High conviction buy on text-book bullish island reversal with significant trading volume increase and bounce off lower band of upward parallel price channel, also with significant volume. The pattern emerge as the company announced the sale of one of its assets (the Portonave port for 1,3B BRL), significantly deleveraging the balance sheet as part of an asset...
CTXS has had a series of Long Islands with the last one being a Island Reversal. Unfortunately, yesterday's bust downward already meets the measure rule, preventing you from any profits from the downward breakout on that Island Reversal. However, there is a 65% chance for a pullback to occur, which also could fit it into the Dead-cat Bounce category. Wait at least...
CHUY moving strong with great earnings and gapped well. High today and this is an island reversal...this could cause a nice run, I bought Oct 35 calls and look for a decent move over the next few days....buying time but the options were 2.08 so BE is 37.08 at Oct x date....I have not eaten here yet but sounds like people like it as earnings go higher with revisions