ARNA: Targets

The targets of 5.23 and 5.64 both got MADE in yesterday's trading, the latter within three cents. The session high was 5.61.

The 5.64 and 5.61 highs set up a flat top for a morph into an Ascending Triangle. If ARNA pulls back here, then breaks out above 5.64 - 5.61, that would look fine. With Symmetrical Triangles, though, we also want to look for a possible morph into a Bear Flag/Rising Channel, so we create what I call a "morph line," which is the red line on the chart. It has an upward slope that is exactly the same as the rising trendline connecting Blue Data points #2-#4. We anchor the "morph line" to Blue Data Point #3. Notice that ARNA ran right to that red "morph line" yesterday, then backed off.

That's alright, and a pullback toward the Symmetrical Triangle breakout can be expected, but we don't want to see ARNA close back below the breakout, nor do we want to see the blue #2-#4 trendline get taken out. That would be a breakdown below what could be a morph into a Rising Channel.