Telefix Communications Holdings Inc. (TLFX)

[Imperial Whazoo]

Yeah, but you need to check out the pattern that I think may be forming here.

Check this out. Its cool.

On 7/12, we saw a Low of the Day (henceforth LOD) of .0115 on miserably tiny volume. It also closed above the LOD.

It turned and ran to a High of the Day (henceforth HOD) of .019 on almost 14 million traded on 7/14.

The next day (7/15), it traded 20.5 million and the day was a pullback day.

But the on 7/15:

a) it did not even approach the prior low of .0115. Not even coming close. It had a LOD of .014.

b) It closed ABOVE the LOD (close was .0143)

So it was both a pullback to a higher low (.0115 vs .014.... not even close) AND it was a close above the LOD of .014 (it closed at .0143).

Then, the next day (7/16):
-it had less than 2 mil vol (comparatively low volume , IMHO)
-it had a LOD that was above the prior LOD's
-and the close was above the LOD.

So it looked to me like a pattern might be developing with each pullback: higher lows and closing above the LOD.

Bore watching. So I watched for it to repeat. It did.

On 7/19... bingo: The former HOD of 7/14 was retested (.019). There's your retast of the HOD.

And guess what we saw today?

We saw the reprise of the geometry I was hoping to see:
a). the LOD is a higher low today - .0115 on 7/12, .014 on 7/15, & .0145 today

b). the close today was above the LOD, just like on 7/12 & 7/15

Are we seeing a pattern develop?
- each time down, the LOD is a progressively higher low
- the close on that day is above the LOD
- and the high of .019 is being repeatedly retested

Now, if the pattern were one where, each time down, we were seeing lower lows, then that would be one thing. But its not doing that. It is pulling back each time to a higher low, and closing above the LOD.

Up to retest.
Back to a higher low.
Up again to retest the high.
Back to a higher low.

And so forth.

I see a pattern. It needs confirmation, but my basic point is that 25% down is bad, but when its the above pattern, I'm molified a bit.

So lets watch to see if it comes back up and retests .019 again. Then, lets watch to see if it closes above the LOD on the retrace. And look to see if the LOD is setting a higher low each time the retrace event occurs.

A triangle / flag / pennant pattern perhaps?

The lines of the channel had been angled down, but the volume coming in the way it had the last few days, together with the repeated retests of the HOD & the upslant to the higher lows during theses days of higher volume..... it all speaks of some kind of change in the trend.

A pennant or flag with a flat support top, higher volume, and an upslant to the support line may signal a breakout as the apex of the flag gets approached.

Watch the volume as either the upward slanting support line or the flat resistance line.

All IMHO, of course.

Imperial Whazoo