If I draw a line from 6/27/13 - 2/14/14 to yesterday (1 year chart), it seems to me this needs to break and close above yesterdays high to break the previous long term trend. I would like to see the gap filled to enter for a longer trade. Also kicking myself for taking profit too early after a nice entry. Am I missing anything?
Go to a 2 yr weekly chart. It will filter out all the noise. I use a candlestick chart. Now draw your trendline. You should have 2 touches from 6/26/13 at 17.75 to 20.03 which happened (if I remember correctly) 2 days ago.
Now draw your trendline at the top. You should get a Symmetrical Triangle chart pattern somewhere between 20.03 and 26. These figures at this time are your support and resistance areas for this chart pattern, but these figures will change as the chart pattern is formed. The bottom trendline will move higher and the top trendline will move lower until one of the trendlines breaks.
Inside the Symmetrical Triangle, there will be smaller chart patterns. I mentioned in a previous thread that a Head & Shoulders appears to be forming. This pattern is inside the Symmetrical Triangle. A larger chart pattern will usually contain a smaller chart pattern until eventually the smaller pattern breaks thru.
Gaps are filled 95% of the time so there is a strong possibility the gap will be filled. GL
Thank you for the educational reply. I have been using TA now for about 4 years and I'm always puzzled by how many times I've seen a stock hit resistance (after what appears to be a very strong move) and fail. I'm sure there is an answer but seems unlikely a result of retail investing or coincidence. I'm looking for a gap close and reentry for the next move up.