After a brief excursion below the blue fork, price is now flirting with the lower parallel of that fork. A breakout above the swing high of 130.4 would push the price back into the blue fork and also trigger a fresh buy signal in the Point and Figure Chart.
The stock looks bullish across Daily, weekly & monthly time frame. Expect a swift move once price gets deeper into that ellipse highlighted in the chart.
I would not be surprised if the stock rushes to the middle line of the blue fork. The recent swing low at 100 would be the major support for the stock.
Comment
⋅
Price has managed to recover and settle above the lower blue parallel, which is a bullish outcome. Also look at the comments in the Point & Figure Chart featured below.
More than the lines, I prefer to give higher weightage to a breach of swing high or swing low. The lines of the pitchfork are just areas to facilitate or identify trade entries. Stops and trend negation happens only on a breach of swing high or swing low. 103 is the recent swing low in Weekly chart. For me, trend is bullish until we break this low.
Cheers
vijayaraghavanv
⋅
@techtrail, Thanks Sir! understood, had a different idea about the lines.