ERHC Energy Inc (ERHE)

[TOB]

Yes that's right, an ERHE rally pattern has higher highs and higher lows.

For example, in the last 4 days we saw a higher high at .14, and a higher low at .10 (the previous low was at .0840)If this mini-rally continues that was the first leg.

For example, looking at the ERHE rally of 2009 on a weekly chart (below) we see a series of higher highs, which I have marked with red arrows, and higher lows, which I have marked with green arrows.

Notice that when the rally was over, we then saw lower highs, which I marked with two yellow arrows, and lower lows, which I marked with two blue arrows.

The first of these were a warning sign that the up-trend rally was over and a down-trend sell-off was beginning. (There was one higher low during the initial decline, but it was followed by a much lower high and a much lower low. The subsequent dead-cat-bounce rally in 2010 wasn't confirmed with a higher low, and was followed by a plunge.)