With respect Chalea - I have been a technical trader for 15...

With respect Chalea - I have been a technical trader for 15 years and I can tell you that in the long run, while certain patterns do tend to reoccur, it is VERY difficult to make money that way over time. Remember the saying "I made more money sitting than thinking". Also, think of the Turtle Traders, look at FMG etc... and you will see that you will win some lose some, clipping a bit of margin here and there but you will be taken out of the game upon a revaluation. This stock is a hold for me as I believe it has enormous industry leading potential. With other stocks I do not mind clipping but then again I don't see big upside for them either.

I am firmly of the opinion that SDL is in a primary impulsive wave. It is corrective on declining volumes and I anticipate a triangle pennant forming basing .225 - .235. This will run for a short time until the MAs catch up with it. From there, it will breakout and go quickly to the next target level on the .40s. Technically we see convergence with Fibonacci retracement from previous highs (50%) and Fibbo extension from the previous run. We then congest into a support/resistance band between .40 and .50.

Putting that aside, fundamentals rule the mid to long term. We expect that within 3 months, George will announce finance partners and most likely offtake. That will be enough fuel to take it to the levels mentioned. Add to that further exploration, infrastructure tie up, China story and IO prices - 5th largest IO mine in the world on current estimates, let alone future potential of tenements, I would very surprised if we don't break $1 into 2011. At production, (forgetting Share consolidation for the moment)we should be heading north from there.

So yes, you can look at TA. But, be very careful with impulsive wave breakouts on high volume. The chances are that you will be left behind.