Replies to post #18 on RAIT Financial Trust (fka RASFQ)

[MetalFillBoy]

RE: Baron: RAS hitting 10.

Hello Baron! Boy, talk about a busy message board!! :o)

Here is an updated hourly chart of RAS. The last three days of trading looks like it has formed a pennant. The sharp rise on 18 Sept forms the flag pole, with the price action of 18,19, and 20 Sept forming the pennant. As posted before, this is a continuation pattern, meaning it should break up. If/when it does, we should move fairly quickly to the next price level. Based on the chart pattern, the next price target is based on the length of the flag pole, and added to the top of the flag pole. I have the flag pole going from 8.80 to 9.40, which is the apex of the pennant. Projecting 0.60 above the 9.40 level brings us to 10.00. My guess is that should happen tomorrow, or some time on Monday.

Again, this is IF it breaks up. I would look for a break of one of the dashed black lines to know which way we move next. If we do break down, I am not sure if, based on the pattern, price would go all the way back down to 8.80. I would imagine that would be the worst case.

Here is a link to an explanation about pennants:

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:flag_pennant_co....

Good luck!