Buy on close of 9/11/08 with target price of $84.66
For those who need a little bit of an explanation of a Jeanty Buy pattern, take a look at http://www.wikinvest.com/image/LUV_BUY.jpg and you should be able to see all the components of the pattern.
Now take a look at the pattern:
This is not the prettiest Jeanty Buy pattern, but you can see that all 4 components of the pattern are present: And that is all that matters.
1) A downward move (red rectangle) from $89.24 to $84.66
2) Retracement with resistance at the 62% and 50% retracement levels evidenced on 9/9/08
3) Resumption of downward trend on 9/9/08
4) Bounce off the 62% extension level of $81.83 on 9/11/08
All components have been seen, therefore we have a buy signal with a target being the bottom of the red rectangle, $84.66
So, what happened?
We hit the target on 9/19/08 when the high hit $84.81 which is just 15 cents over the target. Looking at the chart, one can see how the price of BDX seems to have "reached out" to the target price from a previous day's (9/18/08) close of $80.46
On the day of the signal (9/11/08), the close was $83.39. We would therefore have made a gain of $1.27 or 1.52% in 8 days.
For more Jeanty pattern signals, look at some of the predictions I made for GOOG, EMR, COL, BEN
