February 19, 2009
Triangle Trading Pattern – Tesltra
By Planet Wealth
TLS has formed a Symmetrical Triangle between two major support and resistance lines. Is there any way to tell which way it may break?
There is never any guaranteed way to tell what a stock is going do exactly, this is why stacking the odds in your favour and waiting for a confirming signal is a successful way to trade. But there are usually signs indicating the higher probability direction prior to the breakout.
With Symmetrical Triangles, a better trade would be a break out in the direction of the underlying trend, in the case of TLS, down. Another sign the bears are taking control of the undecided direction is the last two peaks have not been able to touch the top trend line of the triangle but is able to reach the bottom trend line easily. The stock is losing momentum. Keep an eye on TLS and see where it heads.
Topics: stock market, Technical Analysis, trading patterns | No Comments »
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