Magellan Financial Group Ltd forms bullish "Symmetrical...

Magellan Financial Group Ltd forms bullish "Symmetrical Continuation Triangle" chart pattern
Mar 01, 2016

Recognia has detected a "Symmetrical Continuation Triangle (Bullish)" chart pattern formed on Magellan Financial Group Ltd (MFG:ASX). This bullish signal indicates that the stock price may rise from the close of 22.52 to the range of 28.25 - 29.75. The pattern formed over 35 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

Tells Me: The price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. A Symmetrical Continuation Triangle (Bullish) shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks out above the upper trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior uptrend.