Goldcorp (GG) - Three Ascending Triangles

(Click on charts to enlarge, then click on them again for further enlargement. Use left arrow on your browser to return to narrative).

Why is it that we find really nice trades, just when the move is OVER? Curses!

GG came to my attention this weekend, and when I opened the chart, I immediately saw the larger Ascending Triangle (the first one) and could see that the target (55.56) probably already was MADE. It was. On Thursday, April 20. What I didn't see immediately, though, was that Thursday, April 20 also was a breakout of another Ascending Triangle! Oooo-oo...

As you know, I always use the more conservative of my choices to establish targets. The highs of this second Ascending Triangle are 54.72 and 54.68. The breakout occurred crossing 54.65, so...

Math:

54.68 - High of the pattern
52.15 - Low of the pattern

54.68 - 52.15 = 2.53 points of upside on the break above 54.65.

54.65 + 2.53 = Target: 57.18 IN PLAY




Four things that I especially like about this second Ascending Triangle: (1) the Gap Up already has been filled; (2) the gap fill was a successful retest of the top of the pattern (white arrow); (3) Since the breakout of the second Ascending Triangle, a THIRD Ascending Triangle has formed (pattern in red)! and, (4) Within the third Ascending Triangle, there's a little Symmetrical Triangle (pattern in orange), "nested" within it (Yes, I actually am drooling).

The ideal spot to buy the second Ascending Triangle breakout in GG was on the successful retest of the breakout (white arrow). Confirmations like that are quite nice. This still looks like a very nice opportunity, though. The highs of the third Ascending Triangle are 55.76 and 55.80. Low is 54.68, so that's about 1.10, added to a breakout above 55.80 would be a target of roughly 56.86 IN PLAY, not much below the second Ascending Triangle target of 57.18 that already is IN PLAY. I'm too busy drooling over this pretty chart and the interesting fractal behavior to calculate it exactly ;)

"Fractals" is just a fancy name for "repeating patterns." The THREE Ascending Triangles.