Rare Pattern Points to AutoNation Reversal
A rare pattern has formed on the weekly chart of AutoNation (AN), the largest automotive retailer in the U.S. The formation, supported by several technical indicators, suggests the stock price could move significantly higher from its current level.AutoNation (AN) -- Weekly Source: StockCharts.com View Chart » View in New Window »
The diamond formation is a combination of expanding and symmetrical triangles that usually mark a top, but is also considered a continuation pattern. A target price projection is measured in the same way as are normal triangle patterns: by taking the height of the pattern at its widest point, and measuring that distance from the breakout level. In the case of AutoNation, the height at the apex of the diamond measures $12 -- which, added to the $36 breakout level, projects to the $48 area....249 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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