pennant ready to break, page-39

Hi Colster

For mine it is a pennant. Usually symetrical triangle are over longer timeframes.

Either way, these are continuations of the prior trend, and in this case the trend is clearly upwards (if you're in any doubt about this, look at ADX analysis on the chart).

If the trend was downwards, the flag would indicate further downward strength was gathering, and this may be the context in which you have read your text.

Haspete thinks it might drift down to 19c, making a flag I think, before heading upwards. I think this is unlikely because of the trend strength. I thought the support was at 23.5c and I would be a bit concerned if it drifted lower than this. The attempts to break out of the 26.5c barrier indicates that another move might be on, but the buyers have to have enough confidence that they will be joined by fellow travellers to risk buys above these levels, else they get caught out with paper losses in their portfolio.

The previous flag (remember that falling wedge discussion Haspete?) saw the price drifting slightly lower on lower volumes each day, until the downward movement stopped altogether, and the volume was almost nothing. This really indicated that nobody was will to sell for less than 13c, so people can talk about share price manipulation and the like, but if nobody is willing to sell a share for under a certain price, it can only go sideways or upwards. As we've seen previously, this stock doesn't like going sideways for too long. This tells us that whilst there are a number of manic buyers in every new flagpole, who then exit fairly quickly, the stock is also accruing longer term holders who aren't too concerned about short term share price spikes. This in turn is adding to traders' confidence (and fear that they might miss out on the really really big one).

Incidentally, if you're a charty, look at GSE and related posts for a bit of text book development and realisation over the last couple of weeks.