Hi scooter, I like the looks of that AT. The pattern is good, has 2 touches to resistance and most of the higher volume recently is on up days. Price has closed above the 200ema and 20ema.
The target would be roughly $25 on this ascending triangle pattern (pattern low to high = target). Lowtrade might use ~$13 as the pattern low instead of ~$15, depends on how the pattern is viewed... if so, that'd be roughly a $7 target instead of a roughly $5 target.
It would be nice to see one more failed touch to the resistance area so that the pattern gets tighter (for lower risk on entry & stoploss placement), but it doesn't have to.
For an AT pattern, we want at least a few weeks for the pattern to form, at a minimum, and the classic volume pattern would be for volume to be on the decrease as the pattern matures. This represents a mellow phase of sentiment, or consolidation of sentiment as well as price. When it breaks out of the pattern's top resistance area... the concept is that everyone will notice & sentiment will be strongly in favor of buying on this event. We want to see increase in volume on breakout, and also watch out for negative candlestick clues such as a shooting star on the day of breakout as a warning sign that there could be a lot of sellers waiting.
I'm going to put UNXL on watch, thanks! The NASDAQ index isn't too far away from a possible breakout, either, so maybe they'll breakout together and run.
