Last week we said that BEL may go sideways while waiting for some updates about the deal with Melco. We saw an Ascending Triangle pattern and price is moving within it. Now that the news have been out and going back to our weekly chart, it seems that a soft breakout from the resistance has just occurred. This breakout occurred last Oct 24 but a sell on news was felt the next day. Generally, BEL’s weekly chart shows us that it is still bullish. Its newly found support (previous resistance) will be tested. Monday might be another rough day for BEL holders. As long as the price is within our Ascending Triangle pattern then bullish sentiment is still intact.
The Ascending Triangle is a bullish formation that usually forms during an uptrend as a continuation pattern. There are instances when ascending triangles form as reversal patterns at the end of a downtrend, but they are typically continuation patterns. Regardless of where they form, ascending triangles are bullish patterns that indicate accumulation.
December is near and we might have a good play for gaming stocks.