Another Ascending Triangle break out? - Nam Cheong





In my previous posts, I have talked the ascending triangle and shown how profit can be made by waiting for the break up signs.

 

Recently I noticed that Nam Cheong is also forming the ascending triangle, but it is slightly tricky. As shown below, there are 2 different gradient line that forms this triangle, the upper brown line and the lower more slopping black line.

 

According to the technicals, the break out target price (TP) is the width of the furthest distance between the resistance line and the raising support line. But with 2 different support line forming, it is harder to determine the TP.

 

So to be on the safe side, we will use the brown support line with a lower TP.

 

For those who have long, a break up would means continuation of the uptrend. If you are looking to enter, it would be better to wait for a clear break out with volume, or indiction of strong stochastic cross over. Which I will cover in my next post.

 

Thanks