Wednesday, October 17, 2012 12:33:32 AM
HDY Daily Chart
After a valiant battle, with no less than 11 trading days either closing at, or having a low at .70, this support level has given way with 8 of the last 9 trading days closing below .70
This makes .70 the new proximal resistance, with 3 of the last 7 trading days having a high of exactly .70
Support now is the low of .62, and below that, the key support at .56, only a dime away.
As I mentioned September 27th, the overall chart of this pattern has been one of a rounded multi-top distribution. The peak top was $1.10 and since then we have seen lower highs, lower lows and no breakouts above resistance, just breakouts below support.
This sort of rounded top pattern tends to resolve in a sharp move to the downside. (See the link for an outline of the rounded multi-top distribution pattern)
For this reason I still favour a re-test of the low at 0.62 and 0.56.
Alternatively I would keep an eye on the options for any unusual buying, as word of a potential JV partner and/or positive 3D seismic would likely show there as a leading indicator. The slow decline alternatively, does not look encouraging.
After a valiant battle, with no less than 11 trading days either closing at, or having a low at .70, this support level has given way with 8 of the last 9 trading days closing below .70
This makes .70 the new proximal resistance, with 3 of the last 7 trading days having a high of exactly .70
Support now is the low of .62, and below that, the key support at .56, only a dime away.
As I mentioned September 27th, the overall chart of this pattern has been one of a rounded multi-top distribution. The peak top was $1.10 and since then we have seen lower highs, lower lows and no breakouts above resistance, just breakouts below support.
This sort of rounded top pattern tends to resolve in a sharp move to the downside. (See the link for an outline of the rounded multi-top distribution pattern)
For this reason I still favour a re-test of the low at 0.62 and 0.56.
Alternatively I would keep an eye on the options for any unusual buying, as word of a potential JV partner and/or positive 3D seismic would likely show there as a leading indicator. The slow decline alternatively, does not look encouraging.
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