(Please note that the following message deals with TPRO's technical status. If technical analysis is one of your pet peeves, please do not read this message. It will only cause you to have anger and pain.
Note: One does not have to understand technical analysis to understand this message. It has been written on a level that anyone can understand).
Well, TAVA has formed a very bullish TA signal today. As you might suspect, today's breakout was the first "confirmation" of this formation.
TPRO has now formed an asymmetrical triangle - a signal that usually results in setting new highs (or at least breaking intermediate resistance). This formation has been in the works since August - 6 months ago. The longer the formation, the more violent the breakout.
For those of you that might wish to see it, print out a graph of TPRO for one year (if you already have TA software, you dont need to do this). I'll attempt to guide you on drawing this picture for all to see....
The triangle consists of 3 lines (as all triangles do). You have one line descending from the top, one line ascending from the bottom, and one line that forms the base. The asymmetrical triangle (better known as an isosceles triangle) is lying sideways - essentially turned 90 degrees to the right so that its head is pointing rightward (don't worry - that's the toughest this jargon gets).
To construct the triangle (or see it, I mean), you need to draw the first line, the Long Downtrend line, starting from 9/4/97's high of 7 17/32 and passes through, among other points, the high of 6 5/8 achieved on 1/2/98.
This line actually passes through multiple points (and is broken by today's rise), but those 2 will be sufficient to see where I'm coming from.
The second line to be drawn, this one the uptrend line, starts from the low of 4 3/4 on 12/18/97 and goes through the low of 5 on 1/12/98 and the low of 5.18 on 1/27/98.
Both of the lines described above should be extended to see the full range of the formation. To "see" the ascending triangle, please draw a vertical line near TPRO's ultimate high of 7.81.
And, wala! There's an asymmetrical triangle who's head has been broken as of today (and on good volume to confirm the breakout). If you're curious as to why the price did not go all the way into the head of the triangle, it's because breakouts of true asymmetrical triangles are done before the stock ever reaches the tip of the triangle (this is because people are waiting anxiously for the price to take off and when they see something that looks valid, they push it out a bit early......but since it always happens, its actually the "right" time). Look for TPRO to continue its new highs the rest of this week and next week so long as the DTL is never penetrated again from the top. (In case you're wondering, the DTL is the upper boundary of the triangle....the one with a negative slope).
Please email me if you'd like to be sent a picture of what all this looks like if you can't seem to be finding it yourself.
Good Trading/Investing to All
Conservatively Yours,
Raymond J. Norris |
