Here’s A Recurring Pattern
Some stocks have recurring
technical tendencies.
For instance, in
yesterday’s trade, Magal Security Systems (MAGS) formed a
large intraday symmetrical triangle from which it made a hard breakdown. In fact
my midday write up was about controlling a potential loss off an upside trigger,
but giving the stock enough room to play itself out properly. Well, that one
didn’t work, but we did get ’em from the short side later on in the session out
of a smaller consolidation, after the larger pattern breakdown.
In today’s trade interestingly enough, it’s the
familiar triangle once again that has dominated the intraday trade. A first hour
triangle was developed from which it broke down, before subsequently reversing.
Of technical relevance, besides the pattern, is the use of the prior formations
apex or center line which lent support for the stocks push through session
highs.
10:21:05
Intraday Setup Alert
Magal Security (MAGS)
has formed an intraday symmtrical
triangle on the 5-minute chart. This formation might be used for entries in
either direction, on a breach of either pattern supports or resistance. MAGS is
up .46 at 29.86.
After this intraday b/o through highs was established, it was the ever
familiar symmetrical triangle that appeared once again (not shown). I actually
put up a long biased trigger alert thru a pivot high of this smaller formation.
13:14:37
Intraday Setup Alert
Magal Security (MAGS)
has formed a seven bar symmetrical
triangle on the 5-minute chart. With the stock up 1.65 at 31.05, triggers
might be considered thru pivot and pattern resistance of 31.22.
….Oops my bad on voting for momentum this time around, but ‘no harm, no
foul’ was the actual call as the trigger was never elected–and who knows, maybe
some traders were keen enough to look for the short entry out of this particular
set up.
Chris Tyler