The ascending triangle is a variation of the symmetrical triangle. Ascending triangles are generally considered bullish and are most reliable when found in an uptrend. The top part of the triangle appears flat, while the bottom part of the triangle has an upward slant. In ascending triangles, the market becomes overbought and prices are turned back. Buying then re-enters the market and prices soon reach their old highs, where they are once again turned back. Buying then resurfaces, although at a higher level than before. Prices eventually break through the old highs and are propelled even higher as new buying comes in. (As in the case of the symmetrical triangle, the breakout is generally accompanied by a marked increase in volume.)
Although I am more of a fundamental player than a technical player, I am watching action on RDY all day on level II that tells me much more than what a chart can tell. Extremely high ratio of volume at ask/volume at bid gives me more confidence than anything else.
Actually, I see a very clear battle between two groups of major players. The short syndicate have tried very hard to keep price from rising but I see that they are failing. I think shorts are exhausted and their losses are rising. Of course I admire their conviction and deep pockets but they are bound to lose big which they may be able to afford.
I am looking for $20 before earning annoucement and $25 after the announcement.
Technically RDY has passed May 14, 2007 big drop and his filled the down gap. Now the big resistance is to close above $17.32 with high volume. There is over head supply to cross that line is 2,500,000 to 3, 000,000 shares.
On Balance volume on July 12, 2007 = -60,473 (negative)
Weekly high for five weeks a very rare condition 06/11/07 ----- 15.36 ----- 0.02 06/18/07 ----- 15.67 ----- 0.31 06/25/07 ----- 16.14 ----- 0.47 07/02/07 ----- 16.57 ----- 0.43 07/09/07 ----- 16.98 ----- 0.41�( Till July 12, 2007)
pkaneria>I am looking for $20 before earning announcement and $25 after the announcement.
So far RDY stock action doesn�t show technically, any major reason to make a new high during this month. Next week is option expiration and there is no reason to get over excited based on technically.
S&P July 7, 2007 Report projection for next 12 months is $20.00.