F&N Update
F&N breakout from the triple-top pattern as anticipated yesterday and posted a strong buy signal today. Since the triple-top pattern is span over a long period of time, this is a compound pattern and any breakout will be a "strong" buy.
There are two scenario from here ( I am doing some fortune telling here ):
Scenario 1:
Prices continue to rally higher and higher ( look at the blue color "X" I have marked up in the chart ) giving the late comers no chance to enter unless you want to catch a moving train. I won't advise that because if this happens, it is forming a high pole and that is bearish.
Prices either rally a bid more and reverse ( or reverse from here ) creating a new column of "O" (column "F"). The column of "O" must not generate a sell signal. After some retracement, prices rally again creating a new column of X" (Column "G") and subsequently breakout again. The breakout under this scenario is called "3-box Catapult" and this is the strongest buy signal you can ever get from a Point and Figure Chart.
Let's see which scenario will happen !
There are two scenario from here ( I am doing some fortune telling here ):
Scenario 1:
Prices continue to rally higher and higher ( look at the blue color "X" I have marked up in the chart ) giving the late comers no chance to enter unless you want to catch a moving train. I won't advise that because if this happens, it is forming a high pole and that is bearish.
Prices either rally a bid more and reverse ( or reverse from here ) creating a new column of "O" (column "F"). The column of "O" must not generate a sell signal. After some retracement, prices rally again creating a new column of X" (Column "G") and subsequently breakout again. The breakout under this scenario is called "3-box Catapult" and this is the strongest buy signal you can ever get from a Point and Figure Chart.
Let's see which scenario will happen !
Labels: Stock Pick
posted by Market Wizards @ June 24, 2010
Comments: 0
