Good morning...
SPQ has made a bullish pennant formation that has to break to one side or the other.
It has met all trading criteria to support this chart pattern, strong initial volume, followed by slow decrease, with a rising bottom.
I happen to really love this formation, it is reliable and eventually shows a future price target. Pennants and flags are relatively short-term patterns and should be completed within 1-3 weeks..my experience is the longer it 'drags' out the better the signal. Keep in mind these patterns only take about 4 weeks max..it is make or break time.
We have reached the pinnacle, watch for either a run for .15 or a break below .11 this week. GS40
Criteria that Refutes
Duration of the Pattern
According to Martin Pring, a pattern that exceeds "4 weeks to develop should ... be treated with caution". After 4 weeks, interest in the stock is likely to decrease to point that it is unlikely to continue in a strong uptrend. No Volume Spike on Breakout
The lack of a volume spike on the day of the pattern confirmation is an indication that this pattern may not be reliable. In addition, if the volume has remained constant, or was increasing, over the duration of the pattern, then this pattern should be considered less reliable and may actually reverse.
