Rolling Thunder Exploration Ltd (fka RTHXF)

[The Wawh]

Nice W-formation in week chart

Since May, when we did break through the lower Bollinger Band (BB), San Telmo Energy (STUOF) has been working on a reverse pattern, in this case a W-Formation.

We reached the first bottom in the last week of May (0.33) and the second bottom in the middle of July (0.34). The smaller ‘head’ is symmetrically situated in between.

When we draw a horizontal line from the top of the W (0.42) we notice, that we touched this top line this past week. It is to be expected, that in the following weeks we will see a break out of this W-Formation. To do see, we need to see a clear week close at least above 0.42 but better around 0.45 or higher.

The long term downward trend line since December 2004 lies at 0.44 coming week. A break of that line would confirm the W-turn around formation and open up the way to a higher pps.

Once we crossed the horizontal line at 0.42 it is only a small step to 0.44. I see no reason why we could not reach the fifties again within the next four weeks. The first target out of the W-formation would be the April high at 0.54. The fact this lies above the upper BB does not concern me. The bandwidth will increase when we go up.

Once we reach the lower fifties, we might see a short consolidation, but this is not essential. Any good news might take us right to the sixties, in order to finally break the ‘magic’ 0.62 – 0.63 range.

Buy: 0.43
Stop loss: 0.34
Both based on week closes.

PDF: http://f6.grp.yahoofs.com/v1/AKTrQrCVcOmTTVXlymwzwtNdwVil4qcJllP5_L3YNWSalcHCJwizOwf8_whw1Jww5RHDfOA...