Submitted by admin on Thu, 12/17/2009 - 22:09
Posted in
The chart for Philip Morris (PM) is forming a symmetrical triangle. PM has been on an uptrend, so you'd expect the triangle to be a consolidation before breaking out to the upside. It's best to wait though, because a breakout can occur in any direction. Click the read more link for a minimum price target.
For an upside breakout, subtract the max and min prices of the formation and add that result to the breakout point. For PM, this would be $55/share. For a downside breakout, subtract that value from the breakout point. This would be about $44/share.