double top reversal ~ be careful, page-5

day-trader...

Sorry, but I disagree.

The period between the two refusals (tops) is far too short for a classic "double top" call...what's more, you really need to look at the weekly charts for confirmation here.

The weekly charts, in my opinion, paint a much clearer picture here....we have an "engulfing" pattern forming, which will either lead to a low volume fall to the mid 4's, or perhaps range trading in the 4.8-5.2c level next week. Either way, it is looking like a 4.8-5c close for tomorrow.

This would also close the gap on the weekly charts from 2 weeks ago.

Personally, I read the charts as a single top, with a confirmed refusal to move above 5.7c...as such, a standard retrace to the 15 period EMA should ensue.

In fact, the share closed virtually on this EMA today, suggesting either a quick bounce to the mid-point of today's range (5.3c) or a relatively flat period short term, with trading just above and just below today's close expected.

There is of courase the possibility for further falls, with any volume supported drop below 5c to be watched very carefully.

Fundamentals suggest we are probably seeing a quick retrace and purge prior to the next leg up...but you never really know if there might be behind-the-scenes problems not yet known by the wider public.

Certainly wise to thin down ones exposure at such times...but not necessary to throw the baby out with the bath water just yet.

Cheers!