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Strategies & Market Trends : Chart Formations -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (237)	9/13/1999 7:27:00 PM
From: Casaubon	Read Replies (1) \| Respond to of 967

It is my belief that GLG is putting in an ascending triangle formation, after gapping up in early may, off of a long term downtrend. The trend reversal can be seen on the monthly time frame: iqc.com The high volume bullish engulfing candle in may is supported by a stochastics crossover of %K over %D, and the RSI has clearly changed trend from down to up. The weekly time frame shows the ascending triangle: iqc.com The resistance line is $2.00 and the support line can be seen to be rising John J. Murphy says the following about ascending triangles: They most often appear in an uptrend. It sometimes appears as a bottoming formation. The pattern is bullish in either case. The pattern takes longer than a month but generally less than three months. The volume tends to be slightly heavier on bounces (off the rising support line) and lighter on dips (off the resistance line). The daily chart clearly shows this trend since mid may: iqc.com The decline from $2.25 in late May occurs on falling volume until resistance is reached at $1.50 on rising volume (these are very subtle changes in volume!). The price then rises again to resistance at $2.00 the first of July and backs off, only to find support at 1 5/18 mid july on higher volume. The subsequent bounce brings us to resistance at $2.00 in mid august and again backs off to find support at 1 11/16 on high volume today (I hope)!. The pattern should conclude by breaking out (above $2.00) to the upside on higher volume, to resolve the implications of this pattern. A minimum price objective of $2.50 can be calculated using the standard technique of projecting the amplitude of the pattern (at least $0.50) to the break out price ($2.00). Other opinions are appreciated! Good Luck!