**double top** Chaps, interesting thoughts, but the fact of the...

**double top** Chaps, interesting thoughts, but the fact of the matter is that from a charting prospective the shareprice reached 11.5c twice which created a "DOUBLE TOP"
When this occurs we have a situation whereby the shareprice will retrace to its previous levels prior to its recent highs...in TOX,s case 8.5c is very close to its expected retracement levels following a double top...

A double top occurs when a price makes a "new high" then retraces temporarly , only to re-test the previous high value or point of resistence. The re-test is is usually on much lower volume THAN WHEN IT HIT 11.5C ON THE FIRST CLIMB as we had seen with TOX

This is a classic double top as once this has been achieved the price usually declines below the low point of retracement by the actual range in price action that occured during the development of the double top...hence a first retracement to 9.6c and then a further fall to 8.5-8.6c...in my view this is the expected low level and should IN THEORY return back to attack its first retracment of 9.6c ...how long before this happens is unknown but will usually happen following a double bottom which has the reverse effect....

Double bottoms occur at the conclusion of a downtrend
Price action initially retraces from the recent low point then returns to retest the previous low value. The volume associated with the re -test is will be less than the initial volume. The market does not support the ongoing decline in price action and the sellers disappearer....
one final point ...the retest in price action must be within 3% of the initial high or low value to confimm a double top or bottom...........cheers Jam

p.s a double top/bottom formation occur on a regular basis with most stock charts...so look out for them....Go TOX