Futuris Company (FTRS)

[dizdoti]

Possible Decending Triangle in effect.

I dont have a subscription to sharpcharts so I cant draw the chart up but if you look at EVXA on a 1 Month Daily Chart you will see this.

Connect the highs within the narrow trading channel: 0.0068 to 0.0063 to 0.0060 to 0.0055. As you can see the highs are becoming lower. The bottom of the Triangle would be support at 0.0035 which can be connected many times.

What I find rather scary is the fact that if you were to subtract the highest high of 0.0067 to the lowest low of 0.0035 the number you will end up with is 0.0028. I say this because once the breakout has occurred, the price projection is found by measuring the widest distance of the pattern and subtracting it from the resistance breakout. So next we would take 0.0035 - 0.0028 = 0.0007. Oddly enough 0.0007 has been hit twice before and is the 52wk low. If this plays out like a Decending Triangle we will then be in for a Tripple Bottom chart play with the next support level being 0.0007.

Now I dont mean to scare anyone by posting this and no im def not bashing I still hold all my shares. I also dont encourage you to sell because of this. It can change in the blink of an eye but be careful if this thing tanks below 0.0035. I didnt want to post this in fear that many would sell off but I have helped when the stock is going up and I think its only fair to help in times that it may fall as well.

Again this is not a confirmed pattern unless we break 0.0035 and even then it could head fake and we could pull a 180 for a upside breakout. These narrow squeeze plays can take time to play out and can also go either way so i recommend holding your position until a break below support of 0.0035 is to happen.

Once again im not bashing, only trying to point out what the chart is showing me so that others can learn from it. Keep a close eye on this in the coming days it could go either way!

Heres a link to better understand: http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:descending_triangle_