MNTA Ascending Triangle

I’m buying up a long position in MNTA today because of the shockingly perfect ascending triangle setup that is forming on the chart. The trendlines are about to converge, and I’m hoping for a clean breakout above the flat trendline on high volume.

The triangle has been forming for about 3 months and the volume is drying up as the triangle tightens up. In other words, this is a textbook chart setup. I ignored a few candle "wicks" in drawing the top trendline because it’s obvious that not many shares were traded at those prices anyway, but the wicks definitely reveal how much some buyers are potentially willing to pay for this stock. Another plus is that the stock is in an obvious uptrend (check the 1-year chart).

From a purely technical standpoint, the projected price target for MNTA is approximately $35-36. I plan on setting a stoploss just below the bottom trendline to protect myself from a ascending triangle breakdown, which is the primary risk factor in this type of trade.

I normally don’t swing trade ascending triangles until AFTER they’ve successfully broken out of formation, but this pattern looks too awesome for me to pass up at the moment. Good luck, and please be sure to leave a comment if you have any insight on this stock.

DISCLAIMER: I hold long positions in MNTA.

UPDATE: MNTA has broken out on 2x avg volume and is in play. The technical target is still approximately $35-$36.