Nortel is just about to break-out traders ! I like to tell traders a stock is "breaking out" just prior to them hitting a new 52 week high ! It makes them lots of money ! NT is a great call option play. Nortel is pennies away from hitting a new 52 week high and is in the process of "breaking-out" from a perfect ascending triangle. Ascending triangles are bullish chart formations that are excellent for short term trading. "If" NT hits a new high Tues. or Wed., the stock should rise to US $ 6.25 or CDN $ 8.25. That's a 32 % return. A great swing trade ! John Murphy On Trading Ascending Triangles Murphy states that if a stock breaks out of an ascending triangle it will have a price objective or price target the distance or length of the base of the triangle. Nortel's Ascending Triangle Nortels ascending triangle is almost perfect and can be seen if you pull up a 1,3 or 6 month chart of NT. The two closing stock prices that should be used to calculate the base of NT's ascending triangle are: A. Sept.9/03 closing > US 4.73 or CDN 6.24 (52 week high) minus or (-) B. Sept.2/03 closing > US 3.21 or CDN 4.24 _____________________________________________ C. The base is = US 1.52 or CDN 2.00 Therefore, when NT breaks out of its ascending triangle it should rise US $ 1.52 or CDN $ 2.00 These figures are then added to the stocks prior 52 week high: US $ 4.73 or CDN $ 6.24 + US $ 1.52 or CDN $ 2.00 This makes our short-term price target > US $ 6.25 or CDN $ 8.24 NT is ready to pop !!! Good Luck Technical Traders