I think you have over simplified your chart interpretation. A triangle pattern can be either bullish or bearish depending on the direction of the market momentum. "What is a bullish pennant? A bullish pennant is a technical trading pattern that indicates the impending continuation of a strong upward price move. They're formed when a market makes an extensive move higher, then pauses and consolidates between converging support and resistance lines". "What is a bearish pennant? A bearish pennant is a technical trading pattern that indicates the impending continuation of a downward price move. They’re essentially the opposite to bullish pennants: instead of consolidating after a move up, the market pauses on a significant move down".
The momentum is up for AQD. That is the basis for my bullish interpretation of the triangle (pennant) pattern. I grant that the pattern that I have drawn isn't strictly a pennant formation. But there is a definite baseline @ 2.8c (which is very close to the Fib 38% Retracement level of 2.71c) that was too hard to ignore. Whether a pattern is a triangle or a pennant, I have found that can be a moot point. Plus on the fundamental side, AQD is in a bullish mode with several exploration scenarios in play in a market that is in a bullish mode as well. I use a combo of TA & FA in my approach.
Ps I've redrawn the chart as a proper pennant. Price action still in a Stage 2 Weinstein Uptrend (above 150 Day Moving Average). This stock has a long way to go on the upside.
AQD Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
