Catherine Davey View Resources Limited (VRE) By Catherine Davey, 28 Sep 2007 Despite releasing some bad news recently. View Resources has done the hard work necessary for some renewed rallying.
Analysis
It's worth putting VRE on your watch list even though they issued a warning this week and went on trading halt. VRE has good long-term prospects because it has a great basing pattern. That pattern started to form with an all-time low in 2002 at 8c. By 2004 it was trading over $1. But the gains were not sustained and by 2005 the price had hit 14c. This formed the second leg of a potential double bottom pattern, the confirmation point of which is the highs of 2004 at $1.15. The length of time the pattern took to form and its price magnitude indicates this has the potential, once confirmed, to send VRE sky high.
Outlook
More recently VRE has made another interesting pattern, one that has given a short-term bullish signal. That occurred when the 14c level was retested in the middle of 2006 with a slightly lower low of 13c to form the second leg of a smaller double bottom pattern. That pattern was confirmed in February this year when the price closed above the highs of the pattern at 33c and was followed by a move to over 50c. As is a common event, that confirmation point was retested and the most recent price action for VRE has been around this 33c breakout point. As long as VRE can stay above the August lows of 23c the outlook is positive. The best news would be a close above the $1.15 highs, which would launch big mover potential for VRE. The immediate direction will be determined when VRE comes back on board.
Support:- 0.305; 0.23; 0.13; 0.08
Resistance:- 0.38; 0.525; 0.66; 0.78; 1.15.
VRE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
