Ascending TriangleLooks like earnings are over but JNJ is struggling at the resistance of the top trendline of the triangle.
An ascending triangle is still a triangle and can break either way.
The ascending triangle is a bullish continuation pattern and is characterized by a rising lower trendline and a flat upper trendline that acts as support. This pattern indicates that buyers are more aggressive than sellers as price continues to make higher lows. The pattern completes itself when price breaks out of the triangle in the direction of the overall trend.
The market should be in an uptrend when the ascending triangle appears. The ascending triangle starts to take on its form as the market enters the consolidation phase. While the market is consolidating, a rising trendline can be drawn by connecting the lows. This ascending trendline shows that buyers are slowly pushing the price up which provides further support for a bullish trading bias. The upper trendline acts as resistance. Price often approaches this level and bounces off until the breakout eventually occurs. After price posts a strong break above the upper trendline, traders will look for confirmation of the pattern via continued upward momentum. A clean break of the trendline with a trend in that direction is advisable before long entry.
Ascending triangles can break to the downside just as descending triangles can break to the upside.
Targets are calculated using the distance of the wide end of the triangle and projected upward from the triangle. Some use the bottom trendline for the projection and I have seen others use the bottom trendline.
You can place a stop somewhere under the triangle or inside where you see support. After a break of the upper trendline, some place the stop under the former top trendline of the triangle.
Price is close to the top bollinger band set on an 80 moving average.
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