AI
Sunday, July 15, 2012 6:20:29 PM
TECO TECHNICAL SETUP BULL FLAG PATTERN
I hope the weekend is going well for everyone. I have never been more excited for the work week to start as I am today. $TECO has numerous stock catalysts lined up at this very moment that should uncork a rally that should signal to the world it’s arrival as an up and coming E&P company.
The daily chart is textbook bull flag. This is when there is sideways price movement near the highs of a recent rally and declining volume. This dynamic reflects a stalemate between bulls and bears, or sometimes just profit takers and buyers, at the high of a move as they wait for a signal to rally further. This is a high probability bullish pattern and the links below go into greater detail:
http://robinhoodtrader.com/2010/01/23/technical-talk-the-bull-flag-chart-pattern/
http://www.trending123.com/patterns/bull_flag.html
http://profittrading.com/bullflag.htm
In addition, there is a textbook bullish cross with the 20 day moving average crossing above the 50 day moving average. This tells us that the trend is up and acts as a trigger for many trend following traders and investors.
What we are looking for to signal a breakout is a close above 7 cents on the daily chart. Subsequently, we need to see higher closes above 7 cents to let us know that this is indeed a breakout and not a fake out.
The initial resistance/price targets above 7 cents for the short term I have calculated are 10 cents, 13 cents, and then 15 cents. Ideally this would be achieved through small gap ups with follow through intraday buying. This would give us the steadiest climb with the sturdiest support levels for when the flippers, day traders, and momentum traders inevitably join the party.
However, if this stock does what it did last January with a pre market PR catalyst, I think we see a gap up to 10 cents and a very rapid move through the January high and probably to 15 cents. I’ve gone over January 30th in my head over and over, reviewing my notes, the charts, and if we have another day like that I will definitely be prepared.
Ladies and gentlemen, good luck this week!
I hope the weekend is going well for everyone. I have never been more excited for the work week to start as I am today. $TECO has numerous stock catalysts lined up at this very moment that should uncork a rally that should signal to the world it’s arrival as an up and coming E&P company.
The daily chart is textbook bull flag. This is when there is sideways price movement near the highs of a recent rally and declining volume. This dynamic reflects a stalemate between bulls and bears, or sometimes just profit takers and buyers, at the high of a move as they wait for a signal to rally further. This is a high probability bullish pattern and the links below go into greater detail:
http://robinhoodtrader.com/2010/01/23/technical-talk-the-bull-flag-chart-pattern/
http://www.trending123.com/patterns/bull_flag.html
http://profittrading.com/bullflag.htm
In addition, there is a textbook bullish cross with the 20 day moving average crossing above the 50 day moving average. This tells us that the trend is up and acts as a trigger for many trend following traders and investors.
What we are looking for to signal a breakout is a close above 7 cents on the daily chart. Subsequently, we need to see higher closes above 7 cents to let us know that this is indeed a breakout and not a fake out.
The initial resistance/price targets above 7 cents for the short term I have calculated are 10 cents, 13 cents, and then 15 cents. Ideally this would be achieved through small gap ups with follow through intraday buying. This would give us the steadiest climb with the sturdiest support levels for when the flippers, day traders, and momentum traders inevitably join the party.
However, if this stock does what it did last January with a pre market PR catalyst, I think we see a gap up to 10 cents and a very rapid move through the January high and probably to 15 cents. I’ve gone over January 30th in my head over and over, reviewing my notes, the charts, and if we have another day like that I will definitely be prepared.
Ladies and gentlemen, good luck this week!
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