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Bulls now have established:
1) An upside breakout of the Bullish Wolfe Wave/Bullish Falling Wedge on September 26.
(2) Two successful re-tests of the breakout: September 27 and October 1.
(3) A rally to a post-breakout new high, above 19.14.
(4) A rally above the Wolfe Wave 4 high of 19.78, the first a "higher high," since the Bears took control back in May.
(5) A third day of rally on successively increasing volume each day.
From the pre-breakout low of 17.91, ACOR rallied to an intraday high yesterday, of 21.10. A .618 retracement of that rally would be 19.116, very close to the first rally high of 19.14. The low two days ago was 19.07,, so I would expect support in that 19.07 - 19.14 area.
Suggested stop loss: move it up to 18.99. That locks in a decent gain from the breakout (always excluding a gap down opening below there, which I'd also sell).
2 comments:
Hello there, I really like this wedge pattern, I am not familiar with wolfe wave, but it seems to be it´s just another edited science of elliott wave. Most likely this wedge formation would be filled as a-b-c-d-e in wave world.
You have great charts! Good Work!
Regards,
http://just-charts.blogspot.com/
Thanks for visiting and for the feedback, Mika. Wolfe Waves are interesting. They don't always play out (what does?...LOL), but they can be nice trades. The elements are listed at the top of my first ACOR chart, posted the other day.
Good luck to you!
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