QLGC daily March 19th
Not one of my favorites but then again, I’m not see many new bullish trade setups with above average R/R profiles right now. With that being said, QLGC (QLogic Corp.) would offer an objective entry on a break above this ascending triangle pattern (above the slightly down-sloping uppermost trendline). The first target (T1) would be the yellow downtrend line with the second and final target (T2) at 15.74. Stops should be determined based upon one’s entry price as well as their preferred price target(s), ideally using an R/R (risk-to-reward ratio) of 3:1 or better.
My preference would be to see QLGC, which is currently up against resistance, make at least one more pullback within the pattern before breaking out. Not only would this help build up some additional energy from the consolidation within this contracting price pattern, which often works like a coiled spring, but that would also bring the lower-most trendline of the pattern to a higher price level at that time, thereby providing an objective stop criteria with minimal downside from the trade entry level.