SPLK morphed from an ABC bullish pattern to a symmetrical triangle.
A symmetrical triangle can break up or down and you can use a line at the wide end of the triangle to estimate targets, when it breaks up or down. Or you can subtract the low of the wide end from the high of that wide end and get possible targets.
A S triangle needs 5 touches, 2 to one trendline and 3 to the other. Frequently it is the 5th touch that will break a pattern...but not always.
Targets 2 if this breaks down are 132 then 134..A close below 171.40 could mean triangle is breaking down. But sometimes they break down a bit before breaking up. I feel going long right now is very risky.
Not a recommendation
Komentarz
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Sorry..134 then 132 (o: Hopefully SPLK will recover soon. SPLK has hit T2 (targets 2)
In a Keltner and BB squeeze with Momentum and RSI point to down. Tomorrow's movement can confirm that. Traded this one using long expiration calls and had good results. Again, Appreciate your good work.
lauralea
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@Samywchen, Thx..was the 5th touch so I just guessed it would go down. Probably not a good strategy..guessing (o: I plan to buy it when chart looks better
Samywchen
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@lauralea, After three more days, it still stays in a tight squeeze with as slightly downward trend.
lauralea
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@Samywchen, I guess they do not move quick everytime...looks like the bands squeezed it down tho )o: