This stock has been in a downtrend for the last two years. It...

This stock has been in a downtrend for the last two years. It has recently broken out of the trend channel but is it just a false move? and will we see the price fall back into the channel and fall lower.

It is currently trading in a smaller uptrend channel but has struggled lately to move above the median line and we look to be headed back to the lower trendline of the smaller channel, this will be a critical point to see if the stock is strong enough to maintain this channel breakout.

It could also be trading within a new consolidation or trading zone of 32c to 50c.

If we hit the expected bottom of this small uptrend channel, price action will be the key, if we bounce strongly we could be headed for the top of the trading zone, and pullbacks to the sloping support lines could be great entries. If we weaken and fall back into the larger trend channel we could be headed a lot lower.

This next week or two will be a great indication.