Chart of the Week - CHANNEL BREAK

Central Pacific Financial Corp. (CPF) has broken it's bottom channel line which is a trend reversal concept. Watch for the development of a new channel and its transgression lines.

From Online Trading Concepts

Trend Reversals
When price closes outside of the Linear Regression Channel for long periods of time, this is often interpreted as an early signal that the past price trend may be breaking and a significant reversal might be near.

Linear Regression Channels are quite useful technical analysis charting tools. In addition to identifying trends and trend direction, the use of standard deviation gives traders ideas as to when prices are becoming overbought or oversold relative to the long term trend.




According to the concept, a new uptrend should begin. I guess only time will tell.