Leap Wireless International, Inc. (LEAP) broke through the sell stop that was placed at 11.32. The active trading signal was based on a triangle formation that had completed its E wave. The break of this level so far shows that LEAP was either not within a triangle formation at the time frame being traded or within an incomplete triangle formation.
The trading in LEAP today has met the expected C wave target of 11.10 and traded off a 11.00 low fairly well, closing above the triangle formations trend line. The initial push lower landed almost exactly at the longer term triangle trend line and the 11.10 price target highlighted on the 5 minute chart below. This could have been the expected move in the extended triangle formation noted in previous analysis.
Another internal wave trading scenario could be that the 9.51 to 12.48 wave magnitude is currently trading as a wave 1 of a smaller time frame. This could be why the trading extended past 11.10 towards a projected wave 1 high and wave 2 low internal of this parent wave 1. This particular projected price target support for LEAP would be around 10.90.
A break in trading below this area and certainly the 10.68 level would most likely lead to prices reaching 10.10-10.40 and nullify the triangle formation.
