A continuation symmetrical triangle pattern began developing around mid-December in Lindsay Corporation (LNN).
The price consolidated sideways between two converging boundary lines, until it met support from an intermediate rising trend line.
The rising support of the trend line encouraged a breakaway gap last Tuesday, triggering the pattern. Two days later the price retested the upper boundary line of the pattern and held.
The chart below illustrates the breakout and retest of the symmetrical triangle pattern. In addition, the intermediate rising trend line is indicated, which may be used for protective and trail stops.
Target: $81.50, Protective Stops: confirmed move back below the upper boundary line and/or the intermediate rising trend line. Trail Stop: confirmed move below the rising trend line.
Photo: Zev Spiro
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Disclaimer: The information contained herein is not guaranteed. This is not a solicitation of any order to buy or sell. This material is based upon information that I consider to be reliable, but I do not guarantee its completeness or accuracy. Assumptions, opinions and recommendations contained herein are subject to change without notice, and I am not obligated to update the information contained herein. I have long positions in LNN, LULU, CYOU and SPR. This communication, including any attachments, is for the exclusive use of the intended recipient(s) and/or the intended recipient’s designees. Any use, retention or dissemination by a person other than the intended recipient is strictly prohibited. If you are not the intended recipient or designee, please notify the sender immediately by return e-mail and delete/destroy all copies of this communication.