I'd like to ask for some help and an opinion on whether converging resistance trend lines can be considered a valid predictor of resistance, or whether they are present merely as statistical flukes. The specific case I refer to is the monthly chart of Biotron (ASX:BIT), where there appears to be a primary resistance trend line, yet where a secondary resistance trend line appears to be converging towards the first. The chart is as follows: All the literature I have suggests trend lines occur singly or on parallel trajectories. Is there logic in having converging resistance lines or should the line with the least data points be dismissed as a statistical coincidence?
