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We can presume that a complex correction is developing on the weekly chart of St. Joe Co (JOE). The upside movement in the form of a zigzag (marked by A-B-C) was followed by the symmetrical triangle which was quickly narrowed to the breakout point.

Weekly chart of JOE

This whole corrective movement that you can see on the weekly chart above can be defined as a complex correction W-X-Y according to the Elliott Wave Principle. The first Zigzag pattern is the W part, then the sideway movement is the X part and now we should expect the price to go higher after breaking above the upper line of the triangle (Y part).

Daily chart of JOE

On the daily chart above you can see the possible scenario. In this case the most important factor is the lines of the triangle. As we can see, the price couldn't pass over the support level and now is going north.


Arguments for upside movement:

• the end of the Triangle pattern on the weekly chart which is usually followed by a rapid breakthrough;
• the price couldn’t pass over the support level on the daily chart;
• Symmetrical Triangle is known as a continuation pattern.

Arguments for downside movement:

• the price is below MA (34);
• Triangles often serve as a last part of a complex correction.