Tickers in this Article » ADTN
Today we've chosen to take a look at the monthly chart of ADTRAN (Nasdaq:ADTN) because we've identified a well-formed symmetrical triangle. As you can see below, this consolidation pattern has been forming since early 2003 and we believe that many technical traders will add this stock to their watch lists for 2008. Traders will watch for a break beyond one of the identified trendlines because it will signal a long-term shift in momentum. A break below $21.50 will be used to signal a prolonged move lower (perhaps toward the low created in 2003). Conversely, bullish traders will use watch for a bounce off the nearby trendline and a move above the upper barrier. More time will be needed to see which barrier will be broken first, but the pattern is definitely suggesting that 2008 will be an interesting year for ADTN.