If this isn't a false breakout, we could see a significant move upwards.
See my previous posts on ascending and descending triangles for references as to why this is significant.
Descending and ascending triangles are bearish and bullish signals respectively.... except when price passes 2/3 the way from the left of the triangle to the right. We reverse the signal due to the fact that bears or bulls were unable to break the support or resistance soon enough for us to have faith in the power behind the movement.
The further we move into...
Break the resistance line and a target of $27.24 is created. Look for increased volume on the break.
Lower volume on the break could lead to a false breakout.
Possible case for a long position here in the symmetric triangle formed after the breakout from the descending triangle.
The descending triangle is typically a formation we associate with an upcoming bear move. In this case the price moved over 2/3 the way down the triangle and too close to the apex of the triangle to continue calling it a bearish formation. ...
Descending Triangle Formation
As this formation gets pinched more and more, the bearish view diminishes and turns heavily bullish as bears are unable to take it down.
I'm seeing a continuation pattern in this symmetric triangle over the last year or so. I'm bothered by that false breakout to the upside which fell back into the triangle (does this negate the formation?). also note the low volume in this most recent drop to support line.
What do you guys think?
