Futuris Company (FTRS)

[k_trader]

EVXA does not qualify as a Descending Triangle Pattern, here's why:

1. In order to qualify as a continuation pattern, an established down trend would have to exist, and the down trend would have to be visibly robust similar to what was seen from the beginning of May to the beginning of June.

2. There would have to be at least 2 retraction lows to form a horizontal line. The retrace would have to be from a higher high to a lower high keeping the same support levels with each dip. This does not appear to be the happening, all of our highs have approximately the same resistance levels except for the 28th and 29th which was slightly higher.

3. The Upper Descending Trend Line would need at least two reaction highs to form the upper descending trend line. These reaction highs would have to be successively lower and there should be some distance between the highs. Since the most recent reaction high on the 8th is equal to or greater than the previous reaction high on the 2nd, the the descending triangle is not valid.

4. The length of the pattern should range from a few weeks to many months, with the average pattern lasting from 1-3 months. We have only seen a few days, this does not qualify.

Since the first 4 conditions are not met, the remaining items 5 and 6 are not valid qualifiers as well.

Review the check list on the referenced page, thanks!

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:descending_triangle_

GLTY