LSE:DEB – Ascending Triangle

Trend:        
– Short/Medium-Term bullish
– Established ascending trendline
– Trading above 8/21/50/200eMA’s
Volume:      
– Volume Profile shows heavy volume around 81 and 78.5, providing likely support levels
– Note the contracting volume over the last 3 sessions – this can be a character of breakouts, but we’d want to see an increase in volume to confirm the breakout
Target:
– Point & Figure Chart (P&F) projects approximate target of 90.5 and confirm Triple Top breakout
– Ascending Triangle projects approximate target around 90.3 (also note that intraday looks like an inverted Head and Shoulders continuation pattern)
– The 90’s would be the minimum target, but also note the historical swing high (and psychological round number) of 100 as a potential target
Conclusion:
– A break below the trendline would invalidate the setup, but we’d need to see a close beneath the 8/21 eMA’s to warn of a short-term reversal
– Ideally we want to see a close above 83.9 on higher volume to confirm the breakout, but a more conservative approach could be to see if this level becomes support before entering long (and achieving a higher reward/risk)
– Otherwise beneath 81 is a sensible stop-loss level

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