3wly chart basing pattern, page-24

Hi gto21,
Re:
Im no good at reading these charts.. but
"Technically the Down Trending Channel Resistance Line [RED] "
means the sp is looking at moving down before up ???

These Basing Patterns usually creep sideways and across the Down Trending Channel.
Once loaded up, the goal is to Break Out of the Upper Resistance Line [Red Line on the 2WLY Chart].
Typically they will 'Double Bottom' and then 'Higher Low', or 'Higher Double Low' [Bottom], before lifting off.
Generally, the wider they creep sideways, the higher they go.

As Fatstocks rightly points out, they generally have limited downside with very good upside potential.

The current downturn is very similar to other sideways 'Spikes' that have caused me a lot of pain in the past.
If a Higher Low can be established, a fast move up can be expected.
From a Higher Low, 0.25 [25c] is Technically quite realistic.

Cheers,
U2