Ok last week I alluded to the fact that an ascending Triangle formation was in the early stages of for development for this stock. Although still early days for me to be 100% sure I think there is a good chance it continue to take shape. Currently it is contained within the broader up trend channel for the stock (Green lines) and as such is a continuation pattern. There is no doubt the top of the triangle is at 4.3c the uncertainty for me is the where the bottom edge of the triangle resides... I have put an upward sloping line (Orange) where I think it "may" end up being but we will need confirmation by a higher low (Note: The next higher low must be above 0.028c else triangle pattern is voided) ...Once we have that higher low the triangle will be confirmed as "in play". Also of note is the falling volume as (Shown with orange line in the Volume) which is also a prerequisite for a Triangle. In bullish markets the Ascending triangle has about an 80% accuracy.
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The theory goes a little like this... there is a temporary ceiling at 4.3c above which heavy supply exists. So trading falls below that level initially (ie, on 12 May) there were a lot of sellers and the price was bid down to 2.8c... Having offloaded some weaker holders the stock then rallied back to the 4.3c high again weakening the seller group but not enough to break supply at 4.3c, the price falls again only this time sellers are weaker so it does not penetrate as far down as it did on the 12 May. Trading gets forced into a smaller and reducing area, There result of fewer sellers wishing to come down and increasing buyers. Pressure builds as increasing buyer group cannot get a fill at the price they want and are forced to bid the price higher. At some point before the apex of the triangle the bulls will rush the gate at 4.3c (on fear of missing out) usually triggered by a big trade or gradual creep up close to ceiling and will drive the price well above the former 4.3c resistance point. Resistance point will become Equally strong support going forwards. So a break of 4.3c with Volume is what we are looking for... An initial profit target can be projected to the upper green trendline ...probably around high 5's but we will need confirmation of triangle to project accurately...
Alternate possibility for Triangle which is somewhat more aggressive (Triangle in blue). Again we need to know the point of high low to be sure...
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This is by far one of my favourite patterns of behaviour and Ive seen it play out hundreds of times ....
Caveat: If there is a general market collapse then usually triangle is voided or penetration above ceiling is weak'ish.
All is IMHO DYOR to confim
(20min delay)