AI
Wednesday, May 18, 2011 7:40:11 PM
A Chart Formation Potentially As Historic As AsepticSure
What you're looking at here is a chart formation known as a "Double-Bottom". In terms of technical analysis, it is the second most powerful indicator of a pending bull market - either in a single stock or across an entire market sector or index - in existence. NB: A Triple Bottom is the "Holy Grail" but they are rarer than hen's teeth!
All you need to know is that a sustained breakout (14 days or longer) ABOVE the horizontal ($0.42)line would be a signal confirming the beginning of a potentially "explosive" upward trend.
Bear in mind that it is never a 'right of passage' that the Double-Bottom formation will prove correct 100% of the time. However, in my 25 years of technical trading experience they DO prove worthy indicators 90% of the time.
As a note of further caution, bear in mind my earlier post where I suggsted that this stock will "on probability" range-trade sideways for several weeks before any true test of the $0.42 resistance level is made. And a further test to the downside is also 'absolutely on the cards' prior to any major push upwards.
Take from it what you will :)
What you're looking at here is a chart formation known as a "Double-Bottom". In terms of technical analysis, it is the second most powerful indicator of a pending bull market - either in a single stock or across an entire market sector or index - in existence. NB: A Triple Bottom is the "Holy Grail" but they are rarer than hen's teeth!
All you need to know is that a sustained breakout (14 days or longer) ABOVE the horizontal ($0.42)line would be a signal confirming the beginning of a potentially "explosive" upward trend.
Bear in mind that it is never a 'right of passage' that the Double-Bottom formation will prove correct 100% of the time. However, in my 25 years of technical trading experience they DO prove worthy indicators 90% of the time.
As a note of further caution, bear in mind my earlier post where I suggsted that this stock will "on probability" range-trade sideways for several weeks before any true test of the $0.42 resistance level is made. And a further test to the downside is also 'absolutely on the cards' prior to any major push upwards.
Take from it what you will :)
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