Etika’s triangle

Hello all,

I was scrolling through my watchlist of charts when I saw Etika’s recent drop. I have one other post on Etika, 5FR.SI. That post was talking about a potential symmetrical triangle. Right now, I see Etika as being in a busted symmetrical triangle. What that means is, Etika broke up from the triangle, only to reverse and drop forcefully. If I was in the trade because of the triangle, I would have been busted.

I look at the apex of a triangle and the last trough in the triangle as support/resistance levels. In this case, it would be 45 or 45.5 cents. Etika broke below that, made a mini rally, but plummeted more than 12% to where it is now. Now that this triangle is busted, I have a downward projection of the 36 – 37 cents region. Let us see what happens next.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

Advertisements

2 Comments

  1. HC
    Posted February 17, 2011 at 3:55 PM | Permalink | Reply

    The next level of support will be at 0.365%. Not sure if I draw the fibonacci retracement correctly but it is based on my own analysis. I think I got busted too 😉

    • Administrator
      Posted February 17, 2011 at 4:03 PM | Permalink | Reply

      Hello HC,

      You meant 36.5 cents? That’ my target. Good.
      Sorry to hear you got busted on this trade. Oh well, just have to move on.

      Thanks for supporting this place.

One Trackback

  1. […] Etika's triangle « TechnicalAnalysisTalk […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: