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ChartWalk (Regions Financial Bank)
July 5, 1995
Weekly chart of Regions Financial Bank (RGBK) shows a forming bullish Ascending Triangle (AT) pattern. We originally bought RGBK at 15.75 on February 1, 1995 per HSL 560 (US Mkt).
The AT consists of a flat top & a rising lower trendline. It's the rising trendline that gives us an early clue that the stock wants to go higher. However, until the highs of the flat top (18.75) are exceeded, this pattern could also become a bearish Double Top (DT). A decline below the 17.25 level would "complete" the DT pattern. Gamblers who are bullish can anticipate a breakout over 18.72 & buy near the lower trendline. The risk is greater than waiting for the completion of the AT, but the protective stop-loss is smaller. Stop-loss would be a close below 17.25, since that completes the bearish DT pattern.