Powerful Flag Formation in Play, page-2

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TraderGT

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24/05/15

10:30

Post #: 15339631
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Originally posted by marty386 ↑

Now, first up I'm not trying to compete with the 'triangle' thread, this is just a slightly varied take on the TA.
As many know I'm a huge fan of flag/pennant formations and the current market is skewed towards pennant breakout success (to a greater extent than statistically predicted).

Below we see the pennant quite clearly. The target is well an truly 5.9c+, at the very least mid-5's.
The key to the pennant formation is that a slight down-trend is allowed, and that is what we are seeing, indeed, another lower low after a green day this week will keep the pennant valid. The decreasing volume is also following the pennant rulebook. We should see a significant volume increase the day before or the day of the break out.

The Friday close was also bang on the exponential moving average, a bounce from here would add fuel to the pennant break out.

Of course, none of this takes into account the FA which is very strong, perhaps the breakout will coincide with some news???

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Thanks Marty nice work!

IMO - we are unlikely to see News till post the EGM

Why? Once Marketboomer is divested (which i expect) - the company will have no barriers and can progress with there plan of "moving into new categories"

EGM is less then 2 weeks away.....i expect some action post the EGM from 1. - the SP and 2. - In the form of ASX announcements.

For those that havent seen i have attached CL8 presentation from Nov 2014

CL8 Price at posting: 3.1¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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