Nope no Head and Shoulder pattern here, to the novice chartist I can understand that it looks like there might be but that's also the same thing when people see animals in the shapes of clouds or figures in bushes; the mind sees familiar patterns and creates constructs for itself so if you're knowledge is lower or your predisposed to negative bias you'll see things that aren't there to suit your personal mental psychology.
The "left" shoulder isn't actually there as if you go through other chart settings, not just relying on Japanese Candlesticks; you get a clearer flow of movement; the spike in price for that one day was abnormal and rather it's just one long curve up if you follow the base of the price movement; this price spike brokeout of the Wave-1 of the Elliot Wave Pattern that's currently playing out, which initially had me thinking Wave-1 ended there (where the one dot sits out of the rest) but it actually didn't on further investigation and Wave-1 finished at the recent 4.95c high before Wave-2 retrace began and ended at the 3.2c CR price in this accumulation channel between 3c to 3.3c.
Need to learn to cut out the noise on the charts.
The patterns on the Daily Chart;
First Overall Pattern:
Cup and Handle
Which is prevalent on the Weekly Chart and then flows through to the Daily Chart.
Currently trading through the Handle of the Cup; coincides with the share price sitting in this accumulation channel and the MACD also shows the CUP and then Handle formation, following the share price and candles above.
Elliot Waves + Accumulation Channel
As noted above and in previous posts, since August and the 2c levels; RDN has started on it's next Elliot Wave move, where Wave-1 began and brokeout of that first accumulation channel in August. There was a spike outside of the overall move up but it pulled back to the main channel of Wave-1 and continued its move up to 4.95c before it had a distribution channel between 4.2 and 4.9c, then starting Wave-2 with a retrace to the current level and the 3.2c CR price.
After each Wave there's a pause with accumulation at the base and distrubution at the top; currently in an accumulation channel between 3c and 3.3c, coinciding with the MACD bottoming and turning, which it's been close to breakouts twice now with significant volume but when watching the trading live which the Chart can't explain as well; although there are signs on the intra that show the dramatic drop when 3.4/3.5c were being strongly taken out and as was 3.3c yesterday.
Wave-3 waiting to begin from this accumulation channel, it's considered the strongest of the 5-Waves and it is coinciding with significant news to come for RDN with this current drilling campaign.
Acending Scallops
The first Elliot Wave is easier seen with the first Ascending Scallop pattern, these patterns are harder to see until they've finished but you can start to see the rounding of them forming and currently as Wave-3 is waiting to start, there is the rounding forming of the ascending scallop.
Obviously no guarentee but these are the patterns most evident and offer an indication to the direction the stock is currently moving towards and is a graphical and visual representation of the share price movement but the company needs to provide the good news to keep these patterns playing out in the ways they do.
If you bought RDN recently from 3.8c to 4.9c; the chart shows you why it was the wrong time to buy regardless of how good the fundamentals are; the short term there's always price volatility and the 3.2c CR became the main drive to why it then fell back.
I at least try to provide a thorough, deep analysis and explanation for my Charts with an objective view based on what the chart is showing not on what my mind might hope or fearfully see.
(20min delay)