"Someone who knows nothing about t/a and knows equally nothing about the importance, a question.
Around August was there a double top or a triple top in the low seventies followed by a significant drop.
Are they actually double or triple tops and if so are they too close to be significant.
Is is significant to break these previous high's.
Many thanks from a tech analysis gimp."
Hi Mont, Below is an expansion of the chart I posted early on today and as you can see it was a triple top. But as it formed most ta's would have seen it as a "cup with handle" pattern which is usually considered a continuation pattern. The C with H pattern is a contraction pattern as the players get set expecting a positive result from something going on in the Co. In this case the result was obviously a negative and the players bolted,as seen, beginning with a breakaway gap. When a continuation pattern fails (or any pattern for that matter)it is a good plan to get on board (short in this case) as the bulls get burned and have to cover. The price fell 30 cents with three gaps, breakaway, continuation and exhaustion. It also had five momentom waves to the downside. The three gaps and five momentom waves are the average for gaps and waves in a trend and then we start to look for a reversal. Lo and behold look at the reversal signaled by the momentom convergence in the lows (one dot lines)then the divergence in the highs (two dot lines). Now we have six or seven momentom waves up (no not Elliot waves), also six or seven price waves and the trend is over extended, now whilst the trend can do whatever it likes the more it becomes over extended the more we expect consolidation.
falko, happy to admit hindsight is 20/20
Yes it is important to break those old highs and hold the break but I would not count the chickens as yet
EWC Price at posting:
73.5¢ Sentiment: LT Buy Disclosure: Held
