A primary uptrend is present in Citrix Systems, Inc. (CTXS), defined by the primary bullish support line and the 40-week (or 200 day) Simple Moving Average. At the end of a strong summer rally the price traded up to resistance of a channel return line, while overbought readings were present in some indicators, such as the RSI.
An ascending triangle pattern, typically bullish, began to form after the summer rally. The stock has worked off the overbought readings and is consolidating previous gains with volume consistent with a continuation pattern. The long-term weekly chart below outlines both, the primary uptrend and the ascending triangle pattern.
Trigger: confirmed breakout above $73, an increase in volume will add confidence Target: minimum expected objective is $90, obtained by measuring the height of the pattern, Protective Stop: confirmed move below $72.
MicroStrategy, Incorporated (MSTR): Market Letter 3/7/11 – Even though stops were triggered (mid-March) for the flag pattern, the macro pattern is still valid. After yesterday’s large move, wait for a pull-back to enter. (Macro Target: $182)
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