Yangzijiang broken out of triangle

Good day,

Sorry for the inactivity. The past week has been a busy one for me as I get ready for the lunar new year.

Today, I have a chart of Yangzijiang. Yangzijiang РBS6.SI Рrecently broke out of a symmetrical triangle. I may be a little late on this breakout, so I do not think I will go in, but it is still worth watching. So, basically we draw our trendlines, which should be converging into the apex at the end. Volume is good as well (yellow arrow) Рwe have descending volume throughout the duration of the triangle. And on breakout days, volume shot up nicely to give us confirmation of the upward breakout. So the target based on this triangle pattern will be the $1.14 region. Right now we are halfway there, so in not much time we should get up to the target if all goes as expected.

By the way, a side lesson that we can learn from this chart is the beauty of a MACD price-indicator convergence. Take a look at the two black arrows on the charts. Price made a lower low, but the MACD made a higher high. What happens next? Yangzijiang posted a 20% run upwards. Of course hindsight is on our side, so we can praise technical analysis very much here. But, really, the divergence/convergence indications from the MACD is very powerful. I hardly see a failed one. Keep this tool in your technical analysis arsenal.

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.

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