Symmetrical Continuation Pattern
Click to EnlargeMannkind Corp. (MNKD), a company that discovers, develops and commercializes treatments for diabetes and cancer, has shown signs of a symmetrical continuation pattern over the past 19 days. If the pattern is confirmed, this trade should play out in about that amount of time.
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: $8.90 – $9.40
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