Re: Sugar Rat/ Pulling Back to the Breakout Pt.
Trades,
Ever since Jan 4’s high I wondered if this was going to turn into an expanding triangle formation. Then after the test and failure to break support located between the region/zone of 20pts (22.82 – 22.62) and subsequent rise creating the Jan 24th high and now drop, I feel even stronger in my wondering. In other words I’d draw the upper trend line using highs from 12/7, 1/4, & 1/24.
So If in the next week or two the price continues to drop and retests the strong support and again fails/bounces I would suspect a rise to about the 23.42ish area before it drops straight down this time breaking through support and continuing its downtrend since Feb 2011.
IF HOWEVER the price after the bounce continues to rise past 23.42ish I would suspect a creation of another trendline high at around 25.50’s before it drops and does what I stated above.
Just a thought.
KJB22