By: Zev Spiro
Spirit AeroSystems Holdings, Inc. (SPR) recently triggered out of a symmetrical triangle pattern, which formed over the past year. The breakout occurred with a surge in volume which lends confidence to the validity of the pattern. There is a minimum expected price objective of 29 dollars, which is obtained by expanding from the breakout the same distance as the height of the pattern.
Currently, SPR is forming a bull-flag pattern that may provide a low-risk/high-reward long entry opportunity. The trade will trigger with a daily close above the upper resistance line, which is 24 dollars. That $24 level was an important resistance point in mid 2008 and the first quarter of 2010. A move above $24, therefore, will be significant .
Chart 1: This weekly chart of SPR displays the symmetrical triangle pattern that began forming in February 2010.
Chart 2: Below is a daily chart of SPR highlighting the recent bull-flag pattern, which has been developing over the past seven sessions. A breakout above the flag’s resistance can provide a low-risk long entry opportunity.
Trigger: Daily close above $24, Target: $29, Protective Stops: Conservative: confirmed move below $22, Aggressive: confirmed move back below the flag’s base.
If you are interested in receiving Zev Spiro’s market letter, please email zevspiro@oripsllc.com subject “T3”
*DISCLOSURE: No position
This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.
Visit the T3Live Homepage, Virtual Trading Floor, and Learn More About Us.
