SLW had another fast selloff just after the open, but held above the 39.18 gap low then raced higher. I got long near unchanged, at 39.73. The stock then broke out of this Rectangle to the upside, putting a target of 40.74 IN PLAY.
39.98 - identical highs
39.22 - the higher of the two lows
39.98 - 39.22 = 0.76 points of upside on a breakout
39.98 + 0.76 = Target: 40.74 IN PLAY
When patterns break out or break down in the intraday charts, we want to be mindful of the bigger picture in the daily and weekly chart to see if something else militates against a target getting MADE.
40.47 was the high of last week's possilbe Doji Star Hangman, so-o...
...I sold at 40.44, near that high, expecting some resistance from The Bears. The session high of 40.52 got put in three minutes after I sold.
The Bulls made two attempts to regroup and break out of Symmetrical Triangles (the patterns in white and in yellow), but they weren't successful. When those two patterns broke to the downside, SLW sold off pretty good. The Bulls finished the session with a breakout of a Bullish Inverse H&S pattern (in orange) and got close to that pattern target of roughly 39.80.
Gain: $3,500
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