This Is Why You Should Pay Attention To Descending Triangles
ONYX Pharmaceuticals (ONXX)
failed to take out last Friday’s high and closed slightly below its
20-day EMA yesterday. We are looking for a resumption of the downtrend.
10:56:28 (from TradersWire) The clock is
three minutes slow.
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Sell |
ONXX | sell stop at 25.73 | testing intraday support | 25.88 | 25.60 | 25.77 |
TK |
Now. let’s look at the 5-minute
chart from this morning. ONXX tried to move above the declining 20-period EMA
several times, but never succeeded. Each time the stock bounced off the EMA,
ONXX found a support at the 25.75 level. In other words, the issue was forming a
descending triangle. I placed a sell stop just below the bottom of the triangle.
11:07:18
Follow up on ONXX
It has hit our target. Cover your shares or re-adjust stops.
If you have questions, feel free to
mail them to me.