We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of Dendreon Corp. (DNDN)
DNDN looks to be making a classic Cup with Handle pattern.
One thing to always do when trading Cup with Handle is to buy right at the breakout point so you get a good entry.
A lot of times a Cup with Handle breakout will happen on a wide range bar and trader's will see the breakout after the fact and end up buying at a higher price than they should have.
The weekly Trade Triangle is pointing up and the daily Trade Triangle will be pointing up if DNDN trades higher from here which would happen right before the classic breakout point of the Cup with Handle pattern.
It's very interesting, to say the least, that the MarketClub Trade Triangles will be bullish close to a classic breakout point on a classic charting pattern.
Please leave a comment if you have any questions, or suggestions of your own.