I am concerned at the price action to a degree.... triangles have false breaks as noted below....One releif in the chart is the bollinger bands converging and offering support which is at 42 / 42.5 at present...
8. Premature or False Breakouts - Bulkowski calls them "premature" false breakouts and Schabacker refers to them as "false moves" or "shake-outs." Both agree that triangles are among the patterns most susceptible to this phenomenon. Because the pattern can be either a reversal or continuation pattern, investors are particularly susceptible to false moves or, at the very least, confused by them. In addition, because volume becomes so thin as the triangle formation progresses to the apex, it takes very little activity to bring about an erratic and false movement in price, taking the price outside of the trendlines.
MEO Price at posting:
43.5¢ Sentiment: None Disclosure: Held
