By: Zev Spiro
Congrats Packers fans, good game last night!
A continuation symmetrical triangle pattern began developing around mid-December in Lindsay Corporation (LNN). The price consolidated sideways between two converging boundary lines, until it met support from an intermediate rising trend line. The rising support of the trend line encouraged a breakaway gap last Tuesday, triggering the pattern. Two days later the price retested the upper boundary line of the pattern and held.
The chart below illustrates the breakout and retest of the symmetrical triangle pattern. In addition, the intermediate rising trend line is indicated, which may be used for protective and trail stops. Target: $81.50, Protective Stops: confirmed move back below the upper boundary line and/or the intermediate rising trend line. Trail Stop: confirmed move below the rising trend line.
UPDATES:
1) LULU (Market Letter 2/2/11) – Triggered on Friday. If one did not initiate yet, and would like to, wait for a pullback to provide a better risk/reward entry opportunity.
2) CYOU (Market Letter 2/2/11) – As per my comments, there was a pullback that provided an entry opportunity. The price retested the 36.35 support (neckline) and held.
3) SPR (Market Letter 1/27/11) – Triggered on Tuesday with a close above $24, but not much excitement yet. It has held the 24 level for the past four days, which is positive, so monitor this week for upside momentum.
If you are interested in receiving Zev Spiro’s market letter, please email zevspiro@oripsllc.com subject “T3”
*DISCLOSURE: Long LNN
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