morning doji star forming on the weekly

An interesting candlestick pattern could be forming on the Weekly here. So far, this week is a four price Doji sitting in the Star position. If we get a gap up next week and close at 2.4c or higher, this will form the Abandoned Baby candlestick pattern, which is a rare bullish pattern. As a point of interest, our last weekly four price doji occured in Oct 2010 at 3c. Although it took another week to confirm, the share price surged over the following months, peaking at 9.5c in Feb 2011.

Here's an example of the Abandoned Baby pattern.

Aside from all the bullish FA on this stock (such as the placement to sophs at the equivalent of 10c, and the progress on the Copahue project etc..), there are some bullish TA indicators pointing to a possible breakout.

I've drawn two red lines on the chart below through the lows and highs. This is forming a triangle which is an indicator of a possible breakout. There was an attempted breakout two weeks ago, which has fallen back inside the triangle, however, this is the indicator that a positive breakout is more likely than a negative breakout.

The Andrews Pitchfork, in blue, shows that we have broken out of the long-term downtrend about six weeks ago. However, if you were to choose a shallower pitchfork, the breakout occured two weeks ago.

It's worth noting that this stock has had three steep crosses of the zero line on the MACD. One in Oct 2010 (2.8c --> 5c), one in Dec 2010 (3.8c --> 9.5c) and the one that occured two weeks ago (1.8c --> ??).

As for the RSI indicator, we had a bullish divergence occuring between the higher lows of the RSI and the lower lows of the share price prior to the long green candlestick two weeks ago. The RSI does seem to be getting stronger on average with higher lows indicating a positive trend emerging. Of course, to establish a long-term positive trend, the RSI needs to keep within the 40-70+ range.

In my opinion, the coming breakout is going to be a positive one and I believe it will be sustained and will reward LT holders and traders alike. All is IMO and please DYOR.