After a brief excursion below the blue fork, price is now flirting with the lower parallel of that fork. A breakout above the swing high of 130.4 would push the price back into the blue fork and also trigger a fresh buy signal in the Point and Figure Chart.
The stock looks bullish across Daily, weekly & monthly time frame. Expect a swift move once price gets deeper into that ellipse highlighted in the chart.
I would not be surprised if the stock rushes to the middle line of the blue fork. The recent swing low at 100 would be the major support for the stock.
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Price has managed to recover and settle above the lower blue parallel, which is a bullish outcome. Also look at the comments in the Point & Figure Chart featured below.
More than the lines, I prefer to give higher weightage to a breach of swing high or swing low. The lines of the pitchfork are just areas to facilitate or identify trade entries. Stops and trend negation happens only on a breach of swing high or swing low. 103 is the recent swing low in Weekly chart. For me, trend is bullish until we break this low.
Cheers
vijayaraghavanv
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@techtrail, Thanks Sir! understood, had a different idea about the lines.