Ascending Triangles - Gotta love 'em!

[statement00]

Great stuff guys!

Here's some additions to my ascending triangle watchlist

1) CBJ- Breakout point above 3.28

2) MRB- Broke line once, but that was on release of year end results. Breakout point above 3.4

Some others that I'm watching even though they don't fit perfectly are EMFP and SVNT

[Melf Elf]

Very Beautiful Ascending Triangle play!!

Thai,

No kidding!  That is a beautiful triangle play.  Applause.  The top is "flat enough" to be called an Ascending Triangle.

I just jumped in this morning.........we could see 5's soon!

The pattern breakout puts 5.01 IN PLAY (see chart for the math).

Melf, I'm still waiting for you bud!  Please comment

In addition to several other things, this chart is a technician's dream with regard to what we call validation and confirmation.

Validation:

We can connect any two data points and call that a trendline, but we don't know whether or not it's a meaningful trendline unless the market tells us that by "validating" the fact that it is.

Coming off the March 14 low of 3.22, which established the second data point on the ascending line, we know that we've got resistance at the top of the patten, but we don't yet know how important the top trendline (3.93 - 3.85) is,  because we have only two data points.

On March 21, that trendline stood at 3.798.  LVLT made a high that day at 3.80 exactly, then it sold off for the remainder of the day, and also the next day, back to the 50DMA.

That tag of the top of the triangle and the subsequent selloff from there validated the fact that the top trendline was, indeed, resistance.   When LVLT hesitated there at 3.80 exactly, which was "known resistance," players recognized that fact, and they sold it off.

The third tag of the trendline validates it as resistance.  The subsequent selloff was confirmation of that fact.  The market was telling us, "Yes, that is an important trendline."

3.80 now was "the number to beat," in a manner of speaking.

DOUBLE CONFIRMATION:

We not only got that validation and confirmation of resistance, on March 23,  LVLT had an upside breakaway gap out of the pattern to 3.82, and the low of the day was 3.80 exactly, smack on the top of the pattern, giving us DOUBLE CONFIRMATION of the importance of that trendline.

"Former resistance now acted as support" on the Breakaway Gap day, and it's been three white candles to the upside since then.

TRIPLE CONFIRMATION:

Volume on the Breakaway Gap day was the highest in more than two years, which certainly can be viewed as TRIPLE confirmation, and volume has been very good for the past two days.

For Technical Merit, the judges scores for LVLT would look something like...

10...10...10...10...10...10...

    

Your  pattern, by the way, is the Right Shoulder of a two-year Bullish Inverse H&S Shoulders bottom (see next post).   Very nice find, Thai.  Good luck with your trade!

[Melf Elf]

Two-year Bullish Inverse Head & Shoulders Breakout:

[Melf Elf]

The pattern breakout puts 5.01 IN PLAY (see chart for the math).

Thai,

The 5.01 target MADE at the gap up open to 5.08.  You caught a real nice one.  Applause.

[thai626]

Melf!! Glad to see you back my friend! 

Thanks for you analysis of LVLT.  I love the way the chart looks plus with the news that just came out today, I think I may hold till 5.50.  This has a ton of potential!!

You come up with great charts with the facts/analysis behind it.  I'd love to hear what stocks you have currently on your radar screen.  Thanks for getting back to me.................O by the way, what do you think of the WW for BBI?  I haven't got in yet since there are so many outstanding plays out there right now.

Thai

[Melf Elf]

I love the way the chart looks plus with the news that just came out today, I think I may hold till 5.50.  This has a ton of potential!!

Thai,

You're getting another pop this afternoon.  If this keeps up, you might get your 5.50 before the closing bell!

   

I'd love to hear what stocks you have currently on your radar screen.

I'm finally getting a little pop today above 3.34 in CNXT. Little pop.  Only seven cents right now.



I bought it week before last on the pullback to the top of the Ascending Triangle (3.10-3.12) that we discussed.    I have to admit that I nearly panicked out of it last week when Cramer gave it a BOOYAH, but I calmed down and held it.

   

O by the way, what do you think of the WW for BBI?

It didn't look quite right, Thai, but I'll look at it again.  I've been getting some WWs from my Metastock Explorer, but I'm disappointed that I can't figure out where the WWs are. 

About a week ago, M.E. gave me HOV, LEN and RYL...all home builders...but I couldn't see any WWs.  It also has given me NEM and RGLD (gold stocks) and RGEN.  I don't see any WWs, but  I'll keep trying.

[akclide]

Great to have you back.Now I can start posting all my bad TA.

[thai626]

Sorry......Im reposting what I posted in the Stock picking folder.  I don't want you all miss an ascending triangle play.

Wow.....COSI is awesome   

The short term chart (6 months) shows that an ascending triangle breakout has occured.  I think that it's also an inverse H&S breakout but I'm unsure of whether it qualifies because the lead in to the pattern was not downsloping.  Either way, this looks like an excellent play.

The long term chart (12 months) shows that a trading range (rectangle pattern) had been started since July 2005.  Also, there also looks like an Inverse H&S pattern inside the rectangular pattern.

What do you guys think? 

I like HOM, TFSM and COSI!!!  So many great picks...........so little money hehe   

Thai

[wrangler]

VTSS : bought this counting on the breakout of the ascending triangle because of all the excellant news that has been coming out and on the weekly muti-yrear chart compare number of good weeks to bad weeks for the last eight weeks.

[Melf Elf]

I think I may hold till 5.50.  This has a ton of potential!!

Thai,

There's your 5.50...and more!  Good job.  Applause.

Great to have you back.Now I can start posting all my bad TA.

Thanks, akclide.  Post away...practice is the best way to learn.   

[thai626]

Thai,

There's your 5.50...and more!  Good job.  Applause.

Thanks Melf,    Applause to you as well for your perfect timing trade for TFSM!

I'm still not sure if I want to get rid of it at this point.  The momentum is still so strong...........what do you think I should do Melf?  I will be putting a stop order today though just in case!  I wanted to dump this and get in TFSM too.......o well, there's always next time!

Thai

[thai626]

Can't say enough about LVLT.................Lovin the chart     

I noticed a H&S pattern breakout (2 year span) looking at the weekly charts.  IMO, I would say this is a textbook example.

Sorry about the smily face...........I'm just having a little fun 

Thai

Comments? 

[Melf Elf]

The momentum is still so strong...........what do you think I should do Melf?  I will be putting a stop order today though just in case! 

Thai,

Yeah, you can trail a stop to guarantee some profit (barring a gap down).  I've got 6.34 IN PLAY from the two-year Inverse H&S breakout (see my chart near the top of this page).

[aero]

Quick post in appreciation. Great to see this thread places prominently, especially when the posts are so good.

Would be interested on your thoughts.
I think PALM may qualify for an ascending triangle hit resistance at $21 from previous weeks. Daily macd turning positive. Breaks reistance could move significantly higher.

Would post the charts but unfortunately computer illiterate and don't know how to link chart on to site sorry.

all the best

Aero

[thai626]

Thai,

Yeah, you can trail a stop to guarantee some profit (barring a gap down).  I've got 6.34 IN PLAY from the two-year Inverse H&S breakout (see my chart near the top of this page).

Ooooppss......>Thanks Melf, i don't know how I missed the fact that you caught the Inverse H&S pattern first.  Applause!

I exited half my position today to lock in profits......just so that I don't kick myself for not selling.