A Different Kind Of Triangle

Not all triangles are created equal. The textbook elliottwave triangle consists of 5 overlapping waves that each subdivide into 3 waves which can take the form of symmetrical, ascending, descending and expanding triangles. However, sometimes a triangle can develop that has an impulsive form. It is not really a triangle but it has the appearance of one. I believe the triangle that has formed in TNDM may be such an impulsive triangle and today's breakout may be wave iii of 3 of III. The key to discerning the difference is that wave c of 2 appears to be 5 waves down and is followed by wave i, which is 5 waves up. For a true triangle these would be 3 wave not 5 wave forms. This type of triangle is not common, but it is very bullish. The alternative is that the move today completed wave B of a flat correction and wave C down to below the June lows is imminent.

Earnings are expected Thursday BMO, so we shall see which one is the correct view. I am long from 29.90. The first target would be 51.28, but if the bullish view is correct, then much higher prices are possible. A move below 28.75 would be cause to exit at this point. However, I will maintain my stop at my lower initial stop loss until after the earnings announcement to allow for any wild swings which are common in this stock.