The following stock chart of Visa (V) offers a great example of a symmetrical triangle.
Symmetrical Triangles are a basic form of technical analysis spotted in both uptrends and downtrends. Depending on which way the stock breaks out of the pattern a long or short position can be entered.
Note: the following chart of Visa (V) stock is a five month daily stock chart:
1. The blue “1″s show us how Visa formed the top half of its symmetrical triangle.
2. The blue “2″s show us how Visa stock formed the bottom half of its symmetrical triangle.
3. The purple “3″ indicates the area where Visa stock began and eventually broke down. The key day here was June 26th where Visa gapped down on heavier volume, and even though it retraced its steps the following day the damage had already been done to the stock.
- Example 8, Support and Resistance Example, Research in Motion (RIMM)
- Example 7, Support and Resistance Example, Canadian Solar (CSIQ)
- Example 6, Stock Breakout Example, Frontline (FRO)
- Example 5, Visa (V) <– Currently Viewing
- Example 4, Symmetrical Triangle Example, Google (GOOG)
- Example 3, Descending Channel Example, First Solar (FSLR)
- Example 2, Covance (CVD) Stock Example, Support and Resistance
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