Apr 28, 2013

Triangle Pattern on Secular & Tertiary Trends - (NASDAQ:REFR) Research Frontiers, Inc.

Here is an interesting chart I created. 
  MONTHLY CHART
 60MIN CHART

     With $REFR I will be focusing solely on both triangle patterns, and price targets on a 60min time frame. The next upcoming weeks for Research Frontiers will be very decisive for the future prospect of the company’s market capitalization. $REFR at the moment is trading very close to the end of a secular Triangle Descending pattern that has been converging its primary trends from the past thirteen years. This pattern is in many instances recalled of being for the most part bearish, however it does not exclude the probability of undergoing a bullish breakout; if it follows through the upside we might see the start of a new trend for $REFR.

     The second image is based on a 60min interval; however, I only focus on the Symmetrical Triangle that is present at a shorter time interval. Nonetheless, there are many other levels that definitely have proven themselves to be uniform, as well as reliable (e.g., $3.56 - $4.18 - $4.52 – $4.91 -$5.00, etc.) If the price breaks the upper resistance, I would recommend placing a buy order a couple cents above the line (in case it was a fake signal) and seek for the 4.52 price target, placing a stop right below the upper trend line. The Risk/Reward ratio for this strategy is about 1:12 (the stop being very tight). In the other hand, if the stock breaks below the line with the rising slope, the price target would be the $4 dollar mark; we could even see price finding support further below, at the lower green line.

Alexander Schachter

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