(Click On Chart To Enlarge)
After the September 26 breakout of the Bullish Wolfe Wave, ACOR immediately retested the breakout, which was successful, then made a dead run for the target line, at Green #6. It fell shy of achieving it, but in doing so, it established a second data point (21.73) for a "pattern morph" (change) into a possible Bullish Inverse Head & Shoulders (blue circles).
The neckline (21.41-21.73) has an upward slope. There are several different ways to measure the pattern, to derive a target if it breaks out. I always use the most conservative measurement of the choices, so that I don't overestimate, and we're just try to "ballpark" what we're aiming for anyway (it ain't rocket science).
Math:
21.41 - (the more conservative of the 21.41 and 21.73 data points)
15.80 - low of the Head
21.41 - 15.80 = 5.61 points
5.61 added back to 21.41 = a target of 27.02 IN PLAY, if it breaks out.
No guarantees, of course, but these patterns can be very powerful. Two other stocks that I discussed earlier this month, ASPV and QXM both broke out of this pattern, and both of their targets got MADE in a short time.
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