Like I said in my earlier post, I normally see saucers as more reliable indicators when they form over a longer time period but it's interesting to see those two "mini" saucer patterns form side by side for Minbos after the sp didn't break out from the first one. LTP has had a great run over the last 3 months and you could identify three "mini" saucer patterns that formed side by side after each of the first two didn't break out higher. The three together did add up to a longer time period. The break out from the third saucer wasn't very convincing with the first breakout day ending well off its high and on low volume. It took a few more days of small back to back gains, also on low volume, to finally confirm a break out but once it was confirmed, daily gains became larger as more investors and traders began to chase it. Volume was not at all convincing but the sp still quadrupled from the low in just over 1 month. That was certainly not a text book example but the result was fantastic regardless.
As they say, past performance doesn't guarantee future performance and the same applies to chart patterns but I like what I saw yesterday on MNB. The first saucer formed over a relatively short time period and the sp did not break out of that pattern. A second saucer formed and climbed to the rim faster than usual with yesterday's big candle. That candle even managed to break out above the rim and it was on large volume. With the move initially triggered by a NI email, I expected the sp to falter at the rim at 6c. Selling did come in at 6.2c well before the close. The price pulled back to 5.8 but then advanced on 6c again. Sellers again hit it repeatedly at 6c which again I thought would see the end of the NI rally but the buyers kept coming. I think there was more to this move than just NI. Whatever it is, the sp has broken out on big volume and with a 17% gain on the day. On Chi-X it actually finished closer to its 6.5c high at 6.4c. Any follow through buying today should confirm a strong breakout and that could be the start of a large rally ahead. Just need the offtake and financing to make it a big new uptrend.
