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 Traders
NT not breaking resistance today may be understandable as the TSE was closed for a holiday. Had it been open NT might have done better as the TSE usually follows NY and NT is a large part of that average. IF NY continues its run tomorrow the TSE could see a good move and NT with it. On the other hand, taking a look back on the chart it turns out that the today's high was just off a signifigant low -- 4.76 --- in Sept 01 that represented a low from about Dec 95. This low was finally broken in Mar 02 and it was all downhill from there. Could be it just does not have the steam to make it on this move.
Good chart Rascal, Looks good if it takes out 4.74 and closes above this point it should hit the target. I sometimes trade ascending triangles (lately in a bullish market they have been nice moneymakers) Do you trade ascending triangles regularly? Also how do you do your screens? nice work. zman.
Good chart Rascal, Looks good if it takes out 4.74 and closes above this point it should hit the target. I sometimes trade ascending triangles (lately in a bullish market they have been nice moneymakers) Do you trade ascending triangles regularly? Also how do you do your screens? nice work. zman.