VPHM: Symmetrical Triangle

(Click On Chart To Enlarge)

From October 13 post:

"The upside breakout number for Monday, October 15, is a print above 9.9254, so 9.93, and we obviously want to see the 9.99 high (Green #4) get taken out. Next objective would be the recent high of 10.30, which is the top of the pattern.

My stop is below Thursday's 8.86 low, so not much risk (excluding a gap down, of course)."

VPHM got a pop yesterday afternoon on an analyst's recommendation on CNBC. We didn't get the breakout of the Symmetrical Triangle, but VPHM has been working its way toward the top of the pattern in a down market this week, so it's showing good relative strength here, coming off the DOUBLE trendline validation at the bottom of the pattern.

The technical breakout for today, October 17, would be a print of 9.90. We'd like to see a breakout soon because "rule of thumb" is that if we get much beyond two-thirds of the way to the apex of the triangle (where the trendlines converge), it becomes less likely that we'll get the upside breakout. The apex is roughly November 14, so we're there now, at the two-thirds mark.

If VPHM looks set to CLOSE below 9.00, that would be a violation of a TWICE validated trendline, and I'll sell it for a 2% loss.

EDIT: The breakout date on the chart should be October 17, not October 15.