I was left scratching my head the other day when this stock...

I was left scratching my head the other day when this stock broke sideways out of its ascending triangle.

I've run more lines over the chart today than are on Shirley Mclanes face.

This is what I have come up with.

The only trend of relevance I can see on the chart is the most recent ascending triangle which has a bottom of around 3cents and a top of exactly 6.5cents. The mere fact that a break above it did not happen exactly on time is probably irrelevant. Lets face it - the stock just went walkabout for a few days.

Anyway - if the power of the triangle plays out - then the new level of resistance should be 10 cents. This is the height between 3 cents and 6.5cents (3.5cents) added to the current resistance.

Now lets talk about GAP's - Well ADO have proven once already that GAP's don't seem to matter (ref: gap 1.9-2.8), so if it GAP's up today I expect it to stay that way.

Both of these observations actualy point to something that Aksier intimated on a previous post. These guys actualy look genuine. The timing of the announcement validates this.

PS,

I love it when stocks test their resitance levels on the third occasion within a short period of time. It almost always results in a breakout.