Friday, December 14, 2007

CSUN - Another Bullish Falling Wedge Breakout




(Click On Chart To Enlarge)


From Dec. 6 Blog entry (see chart from that entry):


"The pattern in purple is a Falling Wedge. Breakouts above those generally aren't particularly bullish. As we can see, the "breakout" occurred very near the recent low. Often, those breakouts are nothing more than "breaks above" a severely down sloping trendline, like the one here. But, as we also can see, the breakout of this particular Falling Wedge was a very good one.

Falling Wedges are notorious for morphing, or changing, into Bullish Inverse H&S patterns (blue circles), and we've got just that prospect right here. The neckline is 11.53 and yesterday's 11.57 high."


We got a "morph" into another Bullish Falling Wedge, a "fractal," or repeating pattern of the larger one, and an upside breakout of that pattern this morning. Next resistance is 11.53-11.57. CSUN currently is up 18% today.

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