Technically, NOL is a the moment moving in a symmetrical triangle formation and the apex of the triangle would be $1.97. As symmetrical triangle formation is a pattern continuation trend and prior to the formation of the triangle, price trend since March 2009 is an upwards. Therefore, the breakout of symmetrical triangle formation would be continuation of an upwards movement. The expected price target for the breaking out of the symmetrical triangle formation with a $1.97 as breakout point would be $2.57.
The followings were observed :-
1. Volume decline prior to 8th Jul while price moved within the triangle formation
2. Sudden expand in volume on 8th Jul could signal a breakout has materialized
What to look out for :-
1. Breaking out of $2.07 price level that is the upper boundary of the triangle could confirm the triangle breakout
2. Failing to break the $2.07 level could signal price will fall back to hit the lower boundary of the triangle which is around $1.90 and then rebound
Also note that the symmetrical triangle formation would be void if the price breakdown at the lower boundary of the triangle and from the look of it, would be around $1.90.
