Sarissa Resources Inc (SRSR)

[marketphile]

It's not a double bottom, more like the beginning of a consolidation (and hopefully continuation) pattern:



Double bottoms (and tops) are terminal patterns that mark a change in primary trend direction. They are not the most reliable pattern, but they do work a good amount of the time. There's a very old saying: "Double bottoms often hold, but triples rarely do."

What we have here in the case of SRSR is the end (again, hopefully) of a three-phase corrective wave that began on the day of the spike at the end of April. The most bullish scenario would see subsequent price action create a cup-and-handle formation before settling near the recent highs in a tight range. What I'll want to see during the coming weeks is a bit of chop (i.e. one week up, one week down, etc.) with a slight upward bias--that would create the "cup" in the cup-and-handle. That would be the ideal scenario in my mind moving forward, as we still need to spend some time consolidating those gains from April. We'll see what happens...