Compuware is another pennant in an uptrend, just like BIIB and MAY. The only warning is that the ADX has been to an extreme for this symbol and timeframe, but because it's a cheapie, we know that the latecomers will be going for these, even though we perceive it to be high risk.
Again, the buy alarm is set to ring at yesterday's high, and if triggered, the initial stop loss is placed just above yesterday's low. The February 2 swing high is the first upside target, while the January 26 swing high is the second target.
NOTE: If the swing lows on any of these potential pennants are taken out on the downside, what you will then have are potential classic bull flags at the 20-day EMA, and we've seen a lot of them fail over this past week, such as JNPR and ATML.
04.02.05 09:09 #