LaidTrades — Stocks | Forex | Commodities

Canadian Dollar to Make a Comeback Against the Aussie?

Good day FX friends! Today, I present to you a look at the currency cross, AUDCAD. As you can see from its weekly chart, the pair has been trading very well since it touched a low of 0.8579 back in June this year. Since then, the Australian dollar was able to take the Loonie’s number as the pair hit parity (1.0000) and even went on to reach a high of 1.0023 last September 23. Technically, however, the pair’s recent uptrend maybe starting to reverse already. For one, it failed to completely overpass its previous high at 0.9915. The pair has also formed a shooting star candle pattern, indicating that the prior move up north maybe losing momentum. With the stochastics also in the overbought region, the pair could indeed weaken by either moving sideways or reverse. If can find support just above 0.9200 in case it does reverse. On the positive side, a successful breach above the shooting star’s high could propel the pair to its next notable high at 1.0550.

The Reserve Bank of Australia decision not to increase its interest rate from 4.50% to 4.75% caught the market by surprise. As a result, the Aussie lost some of its appeal. The rapid rise of the currency against most of the majors have prompted the RBA to postpone its rate hike. Still, the central bank remained somewhat hawkish stating that “If economic conditions evolve as the board currently expects, it is likely that higher interest rates will be required, at some point, to ensure that inflation remains consistent with the medium-term target.” Aside from this suprise, the weaker-than-expected growth in the country’s retail sales (0.3% versus 0.5%) also placed some selling pressure on the Aussie.

On Canada’s side, its latest employment figures will be out this Friday (October 8). Canadian firms are seen to have added 11,300 more jobs which would have brought the country’s jobless rate down to 8.0% from 8.1%. Improvement in the labor market, of course, would reflect positively on the economy of Canada and on the CAD at least in the short term.

JGS Stocks Gained 1600% In Less Than 2 Years!

Hello, that’s right guys. The title speaks for itself! The stocks of JG Summit Holdings, Inc. or JGS as listed in the Philippine Stock Exchange shot up more than 1600% in less than 2 years. By the way, for those who do not know, this company is involved in air transportation, banking, food manufacturing, hotels, petrochemicals, power generation, publishing, real estate and property development, and telecommunications. It’s owner, John Gokongwei, is one of the biggest ballers in South East Asia.

The JGS stocks started its bull run on December of 2008, when according to some analysts, the bear market was about to end. In fact, they were right because 3 months after, stocks globally started to reverse and went up. From 1.58 pesos, JGS climbed all the way to an all-time high of 27.00 pesos last week. This is definitely an awesome run for a blue chip! If it continues to ascend further, it needs to move pass above it’s all-time high where there could be some heavy selling pressure before it makes another move up. In case it clears out 27.00 pesos, the next resistance could be the 30.00 peso psychological level. On the flip side, the immediate support could be 24.75 pesos. It the stocks further drop below that area, the next support could be the 6-month uptrend. Above all, the stocks could still be headed northbound as long as the trend remains intact.

Will the Australian Dollar Reach Parity With the USD?

Will the Aussie reach parity with the US dollar or even better in the months to come? Technically speaking, there’s a good chance that it would. As you can see from its daily chart, the AUDUSD pair has recently broken out from a descending right-angled broadening triangle. Having past the 0.9350 and 0.9400 hurdles, the pair could now aim for 1.0000. It could, however, encounter some resistance at its all-time high at 0.9849 which it set back in 2008. Nonetheless, a move above this level could put the AUD on track towards dollar-parity. In fact, if we project the height of the pattern from the point of breakout, its upside target is even better – 1.0600. And as long as the pair’s uptrend channel remains intact, I could say that the Aussie has some more room to move north. But with its present overbought conditi0n and the wall that it is seeing at the channel’s resistance, it could move sideways or even retrace for awhile in the near term before making its journey to the heavens.

A lot of high impact economic reports are due in Australia this week. Tomorrow (October 5), Australia’s retail sales and trade balance figures for the month of August will be on deck. Sales at the retail level are seen to have increased again by 0.5% on top of the previous month’s 0.7% gain. The country’s trade balance is likewise seen to tally handsome surplus of A$2.31 billion from A$1.89 billion due to the country’s expansion in exports to China.

Later that day, the Reserve Bank of Australia will also deliver its monetary policy decision. There, the bank is expected to raise its interest rate by 0.25% to 4.75% after 5 months of holding it at 4.50%. The 1.2% growth rate in Australia’s economy during the second quarter of the year plus the recent improvement in the country’s labor market could indeed warrant a hike in the central bank’s interest rate. A rate hike plus the overall weakness in the greenback would make the Aussie more attractive; imagine netting 4.50% (4.75% – 0.25%) just by going long on the AUDUSD.

Mc Donald’s Stocks Going Strong!

Hello traders! Let me present to you my Monday stock pick, Mc Donald’s. They are the largest chain of hamburger fast food restaurants in the world and I’ll be sharing to you my technical analysis on it. The stocks of McDonald’s Corporation or MCD as listed in the Dow Jones has been on an uptrend since 2003 when it was still at $12 per share. At $75 now, it had multiplied by more than 5 times already in 7 years. Imagine being able to hold on to those stocks that long, that’s not bad at all despite going through the 2008 financial crisis! As we zoom in, we could see a steeper trend which is the 14-month upward trading channel. The stocks could most likely continue to move in this direction until the channel gets broken. In case the stock breakdown from the 14-month channel, the next support could be the $70.00 psychological level then after than is $65.31. If the stocks further ascend or maintain to move within the channel, it needs to first clear out it’s 76.26 all-time high as there could be heavy selling pressure in that level. If that gets cleared out, the next resistance could be the $80.00 psychological level. Well, in any case, as long as the uptrend on Ronald’s hamburger chain remains intact the stocks will most likely be bullish.

Silver Surfing!

Good day lads! Like gold (see my gold-related post here), the price of silver has recently marked a new all-time high when it broke above its previous high at 21.34. As you can see, a break out from a symmetrical pattern managed to propel it towards the uncharted territory. With its uptrend line still well intact, it would most likely continue to to head north. In the interim, however, the price of silver could weaken given its overbought conditions. If it does, its previous high and its uptrend line should act as supports to prevent the commodity from crashing. The sky is the limit for this second-tier metal and with its price far cheaper than of gold (presently trading below $22.00 per ounce), it has a greater propensity between the two, in my opinion, to deliver handsome gains.

It appears that the broad-based weakness in the US dollar has forced investors to place their funds in other instruments, making gold and now silver rockstars of the trading arena. With the Fed announcing its intention to increasing the money supply through quantitative easing (non-traditional monetary tool that allows the Fed to directly buy debt instruments from the US government, increasing the supply of the USD in the process) to encourage more lending and spending, the dollar’s strength would fundamentally be anemic. Risk appetite sparked from optimism in the other regions of the world also places a lot of downward pressure on the greenback. If these two factors, Federal QE and negative sentiment on the dollar, continue then the demand for gold as well as silver would likely remain at least in the near term.

My Top 10 Forex Resolutions for 2010

Who said that resolutions can only be made on New Year? Well, it’s still roughly 3 months from the first of January and I already made mine. I mean… the earlier I make the changes the better, right? So let me cut to the chase and tell you now what they are. Here are my top 10 forex decrees:

1) Don’t hesitate to trade the breakouts!

Chart patterns are the bread and butter of technical analysis. There are five basic must-know chart formations – triangles, head and shoulder (inverted), double bottom (tops), cup and handle, triple bottom (top). If you spot a breakout.. trade it!

2) Don’t forget the fundies!

Marry fundamentals with technicals like you’re marrying Jessica Alba. Okay, the latter does not make any sense. In any case, you should always try to execute trades that are both supported by technicals and fundamentals/sentiment as this would increase the chance of them winning.

3) Don’t gamble!

Say no to rogue trading! Trading currencies is not like in a casino where you can just do a one-time big time trade. Of course you can do that but don’t fret if you find your account down to zero the following day. If you want to gamble.. go to a casino! It’s more fun there! If you want to profit… trade forex in a systematic way!

4) Don’t revenge trade!

Did I say no rogue trading? Well, losing is part of the game. So if you do just relax, calm down, and move on. Don’t hit the entry button again and trade twice or thrice of the position that you lost in hopes of getting it back and even winning in one go. You’ll find yourself in a deeper ditch if you lose again.

5) Manage your positions wisely

Manage your positions wisely like your managing your chicks… I mean your checks. Don’t risk more than 1% of your account balance in one trade. Enough said!

6) Avoid trading in a highly volatile time

Trading during the releases of high profile reports like GDP and NFP is not my style. I got whipsawed the last time I tried to ride a sudden slide in prices from a GDP report. You cannot really gauge how much a currency will move given a report. You might get the tail end of the move if you decide to just jump in. If you miss it… then stay away.

7) Trade on retracements

This one is related to number 6. If you miss a breakout or the initial strong move in prices then don’t just jump in. Wait for it to retrace (sounds fancy, eh?) so you can get a better price. Hit the limit order function… it’s there for a reason.

8) Be flexible

The market acts like a girl… fickle minded. You just don’t know what she wants exactly. So sometimes it is best to just adjust and be flexible. To be profitable and likable you gotta do what the woman wants.

9) Use a journal

Okay, journalizing sounds kinda gay-ish. But if you want to keep track of what’s working and what’s not in your trades then you better jot all of them down. Write down your trade ideas, what happened, what you did, what you felt… everything.

10) Go out. Drink. Chix.

Yes. You read that correctly! Forex is a tough business with all the things that you have to read and analyze. We’re just humans. We get strained too. Sometimes we have to take a break as well. So for my tenth decree… Free yourself from stress. Clear your mind. Go out. Drink. Chix.

So there you go… my top 10 forex resolutions. Currently, I’m working on the tenth (Hey Babe!). Alright. Got to head out now. Peace!

Updates on Google Stocks

The search engine giant, Google Inc. or google.com as known to many, remains to be the most visited website at current and is followed by facebook.com. Anyway, I’m here to give my technical analysis update on the Google stocks after it had been more than 2 months since I did. Back then, the stocks were still at $459.61 and moving within a 4-month downtrend (kindly see it here). Things changed now, a week ago, the Google stocks broke out from the $509.25 neckline of the 4-month double bottom formation (could be a reverse head and shoulders for some or even a triangle) and went higher. It could now continue to head north and tap the 7-month resistance or even move pass above it. If the stocks breach that level and clears out that hurdle, the next resistance it could encounter is the 3-year resistance. On the downside, the neckline at $509.25 could be the immediate support. If the Google stocks further fall below that level, the next support could be the 21-month uptrend.

On the fundamental side, today could be a very shaky trading session for the US and Eurozone markets as well as for major currency pairs because the current data on the US unemployment claims will be out today at 0830 eastern time. Not only that, at 1000 eastern time, the US fed chairman Ben Bernanke will talk about the current state of the US economy and could give hint to its future monetary policy. These reports have huge influence in the traders/investors’ sentiments towards the market as it could determine where US economic recovery stands.

The Decade of the Philippine Peso?

A lot of people are asking, will the Philippine peso continue to strengthen against the US dollar? Based on its monthly chart, I’d say that there’s a good chance that it will especially if the USDPHP pair breaks the 43.668 support. If and when it does, the next obvious support would not be at 42.00 as some financial analyst predict but at 40.00. Say the peso buying in tandem with the dollar selling continues and the 40.00 marker gets breached as well, then the pair’s next downside stage would be at 37.50. Actually, I do not want to alarm those who are highly leverage in the greenback. Notice, however, the huge head and shoulders pattern that could be forming already. If this pattern gets validated by a break below 40.00 then it is quite possible that the peso could recover its former glory back in its hay day and trade near the 26.00 versus the USD once again.

The question is, will the Banko Sentral ng Pilipinas (Central Bank of the Philippines) allow the Philippine Peso to appreciate that much? Well, the BSP is not a rookie in protecting the peso. It already defended the peso’s increase in valuation in the past to protect the country’s export industry, foreign direct investments, and the money that the Overseas Filipino Workers (OFWs) are sending back. Hence, it is possible for the BSP to do the same. If it does, then the greenback could rally back towards 46.00 or even 48.00 versus the peso. Still, the global market has the bigger influence regarding the peso. So, continued increase in remittances, which by the way takes up a good chunk of the country’s total income, plus the broad-based weakness in the USD (this was explained in my recent post, please see it here) would benefit the PHP. Companies all over the world are expected continue to lessen their operating costs, thus, supporting the Philippines’ BPO industry and its FDIs in general. Such would also reflect positively in the peso.

Would a higher peso valuation benefit the Philippines? The Philippines is not really an export-based country so even if the country’s export sector gets negatively affected, it would not reflect badly on its overall output. For the longest time, majority of the country GDP is from domestic consumption. Hence, an increase in the peso’s valuation would even encourage more consumption as imports would then be cheaper. Cheaper imports of course would allow local companies to better access and purchase technology that were once scarce, making the processes of the local industries more efficient. Such could also allow local companies to develop their technology which would mark the country’s move from a ‘third world’ country to at least second. Now, will that scenario happen within the next decade? Only time will tell but I’m optimistic that it will.

Technical Outlook On Microsoft Stocks

Welcome to another day of trading stock peeps! What I have here is the chart of Microsoft Corporation or MSFT as listed in the New York Stock Exchange. I’m sure that you all know what the company is about and that its founder, Bill Gates, is currently the richest man on earth. The last time I had a post on this was when it broke down from its inverted flag formation and declined by 10% as it hit $22.73 (kindly see that post in this link). Now, I want to share to you my technical analysis update on this company. As you can see, there could be a symmetrical triangle setting up in the stock chart and could be bearish as the stocks are coming from a 5-month downtrend. This could be confirmed when the breakdown occurs. If it does, the stocks could fall to the support at $23.20. If it further slips below that price mark, the next support could be $22.73 then after that is $22.00. On the upside, if the triangle pattern turns out to be bullish and the stocks breakout from the triangle’s resistance, there could be some selling pressure at the $26.41 resistance. If that gets breached once more, the next resistance level could be $27.32.

Things are Looking More Depressed For the Mighty Dollar

Indeed, things are looking more depressed for the greenback. Now, what led me to say such pessimistic statement? Well, technically speaking, the US dollar index (USDX) which is a measure of the greenback’s valuation against a [Read more...]

UNP Stocks On The Way Up!

Hello stock peeps! That’s right, UNP stocks could further climb if it continues its up-move after inching a little higher when it broke out from the triangle formation. When I mentioned this last September 6 (kindly check the post in this link), the stocks had just breached the triangle’s resistance around $78.00 and last week, it closed at $82.10. If the the stocks of this rail road company continues to go up it first needs to test its $85.80 all-time high. Upon moving passed above that price mark, the next resistance it could encounter is at the $90.00 psychological area. On the downside, if UNP runs out of gas, the immediate support could be $80.00 then after that is the triangle’s resistance. If these support levels still don’t hold to the price, the 17-month uptrend could be a strong one.

EURO To Rise By A Whopping 1,250 Pips Against the US Dollar?

Hiyo FX peeps! Did I get your attention? Yes. I believe that its very likely that the EURUSD pair could gain by about 1,250 pips. Now that’s a lot! As you can see from its daily chart, the fiber has recently broken out from a very nice cup and handle formation. At present, the pair is trading just above the neckline of the pattern. With the stochastics in the overbought territory, it could exchange in a range-bound fashion for awhile before moving north. Now, a move past the 1.3500 resistance could send it on the way towards its minimum upside target (computed by projecting the height of the pattern from the point of breakout at 1.4750. If all go well, it could achieve this target in about 6 months which is also the time that it took to form the pattern.

Despite the recent dip in Europe’s Purchasing Managers’ Indices (PMIs), the business climate in Germany as measured in the German Ifo Business Climate Index surprisingly jumped to its highest score in more than three years this month. The index came in at 106.8 which is over the market’s 106.3 estimate. This rise indicates that German companies can withstand the weaker international demand. On the other side of the globe, in the US, the Fed’s inclination to place another set of stimulus programs to support the slowing growth in the US’s economy has of course weakened the greenback to the benefit of the other non-dollar currencies like the EUR. This plus the rally in the US equities markets have also urged investors to move away from the USD in exchange of the higher yielding assets and anti-dollars like the euro.

Just now, the US’s core durable orders for the month of August have grown by 2.0%, which is almost twice of the 0.9% forecast. The previous month’s change was also positively revised to -2.8% from -3.8%. These numbers signify that the chances of the earlier threat of a double dip recession in the US economy have gotten lesser and lesser.

For next week, the CB Consumer Confidence in September is seen to fall to 52.5 from 53.5. But given the strong rally in the global equities markets for the past two weeks which show the manifestation of consumer confidence in the markets, it is therefore possible for the index to have a better-than-expected result. A better-than-projected mark, as we know, could spur some risk taking and EUR buying.

Remember My Post on the Caterpillar Stocks?

Hello guys! Here’s my stock pick of the day, Caterpillar Inc. or CAT as listed in the New York Stock Exchange. For those who do not know, they are the world’s biggest manufacturer of construction and mining equipment such as most of the bulldozers you see around. Anyway, last September 8, I posted on this and mentioned that the Caterpillar stocks were preparing to climb as there is a bullish symmetrical triangle pattern forming on the stock chart as for my technical analysis (please see it here). What looked to be a symmetrical triangle formation really was one and was indeed bullish as the stocks broke out on the upside last week.

Right now, the stocks are hanging around the $75.87 resistance and if it continues to go up, it could encounter some selling pressure at the next resistance at the $80.00 psychological level. If it successfully passes above the $80.00 price mark, the next resistance could be $85.96. On the flip side, the triangle’s resistance could act as the immediate support. If the stocks further drop below that level, the next marker could be the triangle’s support and after that could be the 18-month uptrend.

Dow Jones Industrial Average at Current

Hello trader friends! Today in my post is the Dow Jones Industrial Average (^DJI). As we can see, the index ended in the red a while ago as investors are wary about the Federal Reserve’s statement yesterday when they said it would keep monetary policy essentially unchanged but suggested some possible concerns about deflation. Anyway, up or down it has already been a good run for the Dow since it had gained more than 7% for this month of September. In fact, we actually thought there was going to be a double dip recession in the US market soon (kindly see this post), however the bulls proved us wrong and the 10,000.00 psychological level remained strong. This current up-move were lifted by recent US economic data and reports on the Eurozone. The US market’s rise could still continue if more positive data get on the way especially if the US unemployment rate and existing home sales coming out tomorrow turn out to be favorable. This in turn could heavily influence investors and traders’ confidence towards the market.

In my technical analysis, for this index to head further up alongside with the positive reports, it needs to first pass above the 3-year resistance line seen in the chart. If it successfully breaches that marker, the next resistance could the 11,000.00 psychological level then after that is 11,309.00. However, if this index drops, the current support that could hold on to it is the 18-month uptrend. If it slides further below that area, the next support could be the 10,000.00 psychological level then after that is 9,600.00.

Swiss Franc, Pausing Before Making Another Move North?

Hiyo FX friends! Here’s my short and sweet technical view on the CHFJPY pair. As you can see from its daily chart, the pair has broken out from a rare inverted head and shoulders continuation pattern. You see, an inverted head and shoulders pattern is generally a bullish reversal pattern although it can occur as a continuation from time to time as in this case. In any case, the upside target for the pair, judging by the height of the pattern and projecting it from the point of breakout, would be somewhere below 88.00. Sustained buying interest could push it over to that marker. At present, though, the pair’s move up north could take a halt given its overbought condition. Given this, it is possible for the pair to range or even retrace for awhile. If ever it weakens, the neckline of the previous formation should keep it afloat. Still, I could more or less say that things are looking up for the Swiss franc in the near term. Long Swiss franc anyone?

PSEi Still on a High!

Hallo stock traders! It’s been more than a week since the main index of the Philippine Stock Exchange (PSEi) has passed above its all-time high of 3,896.74 and if you want to check my post on that last September 9 , kindly click here. Looking at its chart now, we can see it has moved pass above the 4,000.00 psychological resistance when it still hasn’t last week. It was also able to make a new all-time high of 4,125.50 when it hit the 2-year ascending channel’s resistance during the previous trading session. If the PSEi decides to further ascend, the immediate resistance could be the 4,125.50 all-time high. If that price mark gets cleared out, the next could be the 2-year ascending channel’s resistance. On the downside, in case the index follows a correction, the immediate support could be the 4,000.00 psychological level. If it further drops below that marker, the next support could be 3,896.74.

A few hours ago, the data on the U.S. housing starts surged a better-than-expected 10.5% in August to a seasonally adjusted annual rate of 598,000. This could continue to boost traders confidence and add optimism on the global markets.

Australian Dollar To Rise By 10% Against the Yen?

It’s another manic week Forex friends! In today’s FX feature I present to you the daily chart of AUDJPY. As you can see, the pair has recently broken out (upside) from a nice symmetrical triangle formation. This breakout could swing the pair towards its previous high near the 88.00 marker. Projecting the base of the triangle from the point of breakout, the resulting upside target would be at 88.00 as well. The Aussie’s run, however, may be tempered for awhile because conditions are already overbought. The pair could range or retrace shortly before heading north again. And given it’s recent spike, it could potentially form a flag or a pennant pattern. At present, the AUDJPY pair is trading just above 80.00. Therefore, if it reaches 88.00, that would be a sweet 10% gain (1:1 margin).

The recent rally in the global equities market and gold’s rush towards fresh all-time high (see my recent post here) have helped the commodity dollars like the AUD. For this week, no high impact economic reports are due from Australia. The major releases, though, from the US, Canada, and New Zealand would more likely sway the Aussie’s short term movement. The US Fed, of course, will have its monetary policy decision on September 21. Building permits, new and existing home sales plus durable goods orders are due as well from the US. In Canada, the country’s CPI and retail sales accounts are on deck on September 21 and 22. New Zealand, Australia’s neighbor, will likewise publish its second quarter GDP growth. Risk appetite, resulting from one or all the these accounts could benefit the non-dollar currencies like the Aussie. The opposite, however, would weigh on it. Watch out for these reports!

Gold Sailing in Uncharted Territory!

Bling bling! Gold hit a fresh all-time high this week when it reached $1,282.53 per ounce. In my previous post about gold last September 2 (please see it here), I noted that it was already poised for an upside breakout at that time. And guess what, it did just that as it surpassed its previous high at around $1,265.05 per ounce. At present, gold is trading just below $1,280.00. If history repeats itself then it could be up for a short term dip. Notice that some time the other week, gold formed a doji candle which led to a temporary correction. A similar doji formation can be seen at the present which means that gold could once again dip slightly. The stochastics, being in the overbought territory, also suggest the same movement. Nonetheless, gold should find support at either the previous high that it surpassed or at the uptrend line. And until this line gets broken and gold reverses, it should continue moving towards more uncharted areas.

With gold hitting fresh highs, long traders could lock in their profits in the mean time especially before the US Federal monetary policy decision this coming September 21. A weak US dollar has contributed a lot to the jump in the gold’s prices so if the Fed holds its interest rate unchanged and its quantitative easing as is then a weak dollar may ensue once again. Earlier, Fed Chairman Ben Bernanke indicated that the central bank could introduce more QE measures if warranted. Having said that, it is likely that the Fed will maintain its policies at an extended period of time to support the economy’s rebound. If such is the case, then a frail US dollar, and therefore, a stronger gold, could arise.

A rise in the prices of gold, as you know, would be reflected in the prices of the commodity dollars (Australian dollar, New Zealand dollar, Canadian dollar, and Swiss Franc) since these currencies enjoy an 80% correlation with the price of gold. The mining sector, particularly the gold miners, would likewise benefit from a jump in the prices of gold. As for me, buying into any these would be a good play as of the moment.

Phoenix Petroleum Technical Analysis Update

Hello everyone! Another week of trading lies ahead. What I have here is my technical analysis update on Phoenix Petroleum or PNX in the Philippine Stock Exchange. As you can see last August 26, when I posted about this, the stocks have just bounced off the 8-peso resistance after breaking out from the triangle formation (kindly check here). More than a month after, not only has the 8-peso marker been breached but the stocks have also moved passed above the 8.70-peso resistance. By the way, I had a post on this right when it broke out from the triangle formation last July 25 (you may see it here). So for the awesome readers who were convinced by my analysis and considered buying PNX stocks at that point, you’ve already gained more than 20% and that’s definitely not bad at all! Anyway, here are my technical updates on the Phoenix Petroleum stock chart: The stocks could further push upward and continue to run with the bulls, however, there could be some selling pressure at the 10-peso psychological level which for me is also a good resistance area. If it successfully breaches above that level, the next resistance could be 11 pesos. On the downside, the former 8.70 resistance could now act as the current support. If the stocks further drop below that price mark, the next support could be 8 pesos.

Technical Analysis Update on DTE Energy Company

Hi guys! Here’s an update of my technical analysis on DTE Energy Company that I posted last August 9 (kindly click here if you wish to see it). Back then, I mentioned that there is a triangle formation setting up and could be bound for a breakout. However, it hasn’t yet broken out or made a major move but instead maintained consolidating inside the triangle pattern. By the way, I’ve adjusted some support lines that’s why there are slight changes in the chart as you have noticed. Anyway, if the stocks break above the triangle’s resistance, it could head all the way up but could encounter some selling pressure at the $51.15 price mark. If $51.15 gets cleared out, the next resistance could be $54.74. The possibility of the price breaking down from the triangle’s support is slimmer compared to the price breaking above the triangle’s resistance but in case it does, the 17-month uptrend could be a strong support. If it breaks down from the uptrend, $46.67 could be the next support then $45.17.