technical analysis

Catherine Davey, author of a number of books on Technical Analysis wrote a very good report on Mount Burgess a number of years ago.

In this report she said MTB was forming a classic bottoming pattern and that a close above the low of this congestion pattern will confirm a double bottom and be a buy signal. She said that MTB's outlook would change to bullish at a close above 18c.

She said that MTB, like many speculative gold stocks, was capable of extreme volatility and that there was nothing to stop MTB trading up to and above 18c in a flash.

Her first target on the upside is 30c, which is the double bottom target and 1c away from old chart resistance.

I wrote to her again this week to see if her views had changed and she was VERY bullish, she said that MTB will be a rip roarer when it goes. A long term base like this can't be ignored and she was confident when it does close above the 18c highs it will have a long term uptrend that will rival some of the best ten baggers in the small resource category. She said that at this stage it was trading sideways and making an even stronger base for a potential run higher.