01Jan BEL - Bell Corporation

A Go or No Go for BEL? A GO if price will break out from the pennant (tilt) and target price of the pennant tilt is somewhere above 5.80. A breakout of RSI to 74.55 will confirm that momentum upward is valid. A NO GO If price breaks out from the pennant but RSI does not break out from the resistance line, this is a strong signal or confirmation that the bearish divergence is strong and upward momentum is weakening. A reversal may happen soon. Actually, a bearish divergence is already visible to the chart... price making a high last 12Dec and 27Dec but RSI is not. When that happens, there is a possibility that price will move down to 4.5x down to 4.3x level.

I say it must be a go! =P One of my heavyweight sa portfolio ko. hehe... Let's see what will happen this week. I might take profit or unload some if it breaks down from the two converging trend lines or the above statement that I mentioned about the "no go".

Previous post - If you check my previous post, the pattern that was forming before was a Bull Flag but was transformed to a pennant (tilt). You can check the net for the pennant tilt pattern.

Based on the description of J Murphy and T Bullkowski, pennants/flags are short term pattern, less than 3 weeks long. Patterns longer than that are symmetrical triangles, rising or falling wedges. For your information. Thanks.