Title: UPFC Wedge Closed
Tags: UPFC
Blog Entry: United PanAm Financial Corp. (OTC:UPFC) The chart for UPFC forms a perfect wedge, with support forming on 04/23/09 and resistance on 05/18/09. Support is confirmed 7 times in the chart and resistance is confirmed 7 times as the wedge terminates its pattern on 02/19/10. Wedges such as this one, once satisfied, often mark the end of a market move and initiates a retracement back to the start of the wedge. Note that the share price of $3.00 has played a significant alternating role as both support and resistance throughout the formation of this wedge. It has served as resistance a total of 23 times since the start of the wedge pattern. It has served as support a total of 13 times since the start of the pattern. On 02/18 the stock's price broke through the resistance line forming the top of the wedge, but it was effectively blocked by the $3.00 secondary line of resistance. This secondary line of resistance forms with the already-established support line a second ascending triangle pattern that must now be overcome. The triangle pattern ends on 02/26. It is my hunch that if share price pushes above the $3.00 line of resistance at any point before 02/26, then a new upward trend will be started and retracement will ensue towards a $3.60 target price. On the other hand, if the resistance line is not conquered by 02/26 then I expect that there will be a major sell-off and price will suffer towards $2.25 per share, or less.
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