SVA: 7.85 - 7.88 Targets

From September 4, on SVA:

"Basis the 10-Minute chart, the "island" candle in the daily chart is a Symmetrical Triangle, which got broken to the downside on Wednesday's opening Gap Down. That put a target of roughly 7.88 IN PLAY.
Math:

12.50 - High of the pattern
10.01 - Low of the pattern

12.50 - 10.01 = 2.49 points subtracted from the trendline break at roughly 10.37.

10.37 - 2.49 = Target: 7.88 IN PLAY"

Back on September 4, we were at the red arrow in this daily chart. The Rising Wedge (pattern in blue) that formed thereafter is a good depiction of our discussion about the "push and pull" between Bulls and Bears after the Parabolic Blowoff Top to 12.50. Rising Wedges, particularly after a huge volume blowoff like we had in SVA, generally are weak patterns that suggest a continuation to the downside.

Notice that when the pattern broke down, it put a target of 7.85 IN PLAY, within three cents of the 7.88 target already IN PLAY off the Symmetrical Triangle breakdown in the 10-Minute chart that we looked at three weeks ago. Never any guarantees with these things, but that target off the daily chart breakdown reinforced the target off the 10-Minute chart breakdown, thereby increasing the likelihood that the 7.85 and 7.88 targets would get MADE. They did in yesterday's trading.

At yesterday's low, SVA was down 40% from its Parabolic Rally high of 12.50, which is the kind of selloff that can be expected after a HUGE volume Blowoff Top like that. The stock now appears to be looking for Data Point #4 of a Falling Wedge from which to attempt a rally. A continuation lower could morph that possibility into a Falling Channel.