RectangleOOPs
Looks to have pierced support of bottom trendline of rectangle
OOPS!
Looks as if EA is breaking down from the Rectangle pattern
I hate that! Oh well/strong stock and will make a come back
Mid Rectangle (MR) could be a stop whichever way she goes, up or down
Targets listed below for a break down, and above for a break up
Not a recommendation
A Rectangle is a continuation pattern that forms as a trading range during a pause in the trend. The pattern is easily identifiable by two comparable highs and two comparable lows. The highs and lows can be connected to form two parallel lines that make up the top and bottom of a rectangle. Rectangles are sometimes referred to as trading ranges, consolidation zones or congestion areas.
There are many similarities between the rectangle and the symmetrical triangle. While both are usually continuation patterns, they can also mark trend significant tops and bottoms. As with the symmetrical triangle, the rectangle pattern is not complete until a breakout has occurred. Sometimes clues can be found, but the direction of the breakout is usually not determinable beforehand.
To qualify as a continuation pattern, a prior trend should exist. Ideally, the trend should be a few months old and not too mature. The more mature the trend, the less chance that the pattern marks a continuation.
Traders sometimes play these bounces by buying near support and selling near resistance. EA seems to have a bit of a fall awaiting since it broke down through the S of the rectangle. Maybe not a lot though ..the handle of the previous C&H pattern may save it if it falls past the 112.8 mark (o:
