As I scanned the markets with my Trending123 Pattern Scan powered by Recognia, two bullish setups in media stocks caught my eye. Here are my upside targets based on the patterns.
The price seems to be resuming a sharp rally after taking a brief pause. A bullish flag pattern occurs during a dynamic market rally, representing a brief pause as the market “catches its breath” before running off again in the same direction. The pattern consists of two parallel trend lines, often sloping downward against the prevailing uptrend. A bullish flag is confirmed when the price breaks through the upper boundary to resume the rise.
Price Target: $111.00 – $113.00
Symmetrical Continuation Triangle
The price has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. A symmetrical continuation triangle shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range, reflecting uncertainty in the market direction.
Then well before the triangle reaches its apex, the price breaks out above the upper trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior uptrend.
Price Target: $53.75 – $55.00
InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123. Trending123 members receive access to the Trending123 Pattern Scan powered by Recognia free as part of their membership.