With strong competition from other smart phone makers It is hard to predict when BBRY will actually turn around. I found this ABC Bull Pattern in BBRY where BC=61.8%AB .
$OSK stock in Rectangle Channel Pattern- It consist of two trendline parallel to each other having points forming equal highs and equal lows, thus forming a rectangular or box shape. The price is confined between the two trendlines. It consist of the following- Lower Trendline is also known as a support Level and Upper Trendline is called A resistance level.
This pattern is formed when there is a tough competition between the bulls and the bears, no body is ready to give up resulting in equal highs and equal lows. That is why this pattern is also known as consolidation zones.
Breakout can occur in any direction upside or downside. If the breakout is in upside direction, it indicates that the bulls have taken over bears and indicates a buy signal. However if the breakout is in downside direction it indicates selling pressure or victory of bears over bulls and indicates a sell signal.
In this case, the stock is clearly trying to break to the upside. Price targets are usually defined by calculating the difference between upper and lower trendlines and adding that difference to the the breakout price. Here in this chart the price difference is $10, if we add this to the breakout price of $74.13 the price target comes out to be $84.13. It is wise to mark a profit taking zone around target price so that you can take some profits and adjust your stops.
Confirmed Uptrend- Following chart (daily) goes back 7 years and it is clear in this chart that trend direction is from lower left to upper right, which indicates that underlying security is in an uptrend.
Critical price level- A long-term trendline which has proved itself as a strong resistance or support level are considered critical price level. In $COST chart you see clearly marked points on a Horizontal trendline @162.81
Point 1 – 12/8/2015 Advancing prices came to a halt and reversed at this point.
Point 2– Between 7/11/2016- 8/23/2016 there is a congestion zone where prices couldn’t break above previously defined resistance point 1 and eventually headed lower.
Point 3 &4– Price managed to break above the resistance line but soon reverse course and head lower only to hover around resistance line at 162.80. Notice at point 4 price seem to hit a ceiling until they break out. Later, resistance starts acting as support.
Point 5– after recent drop I expect the stock to find support at our price 162.81, before it makes its next big move.
However, If this support level doesn’t hold prices might head down to $146-$153. This price zone has previously acted as an important support and resistance zone.
Potential ABC Bullish candidate?
This area also serves as a potential retracement zone for ABC bullish pattern Where point 6 =A, point 7=B and and C will be somewhere in the highlighted area. If there is a point C in the highlighted zone BC will be equal to .62 to .76 of AB, which is a desirable number for ABC pattern to be proven valid.