An interesting pattern has developed since late August with the...

An interesting pattern has developed since late August with the ex div gap and the recent gap up.

Called an "Island Reversal".

The fall since 13 August has been long and slow. Very reminiscent to the grueling falls (0.759, -25%) of August-November 2010 where the future fund was selling and just before TLS reached a long term bottom. In that case, it was a double bottom which steered TLS out of the downtrend and into a multi year bull run.

Incidentally, the 2010 slide was also during the months between August and November.

My feeling is that TLS is right in the midst of forming a long term bottom. We may have seen the bottom at $2.66 and is all up from here. Means the long term bear run from $6.74 in 2015 has finally come to an end after nearly 6 years of down trend. In which case, there is significant upside to TLS from here.

The Island Reversal is good if it happens, but wont necessarily be the main pattern that completes the bottom. A double bottom with $2.66 in 1-3 months time is a more robust bottoming pattern (as in early 2011).

Note yesterday's low of $3.05, then bounce. If Island Reversal, the gap down to $3.01 should not get filled.

The Island Reversal target comes to around $3.33 (height of the island approx $2.99-$2.66, 33c added onto the break out point of say $3.00). But I think there will be more upside if $3.29 is overcome and $2.66 turns out to be bottom.

Some Island Reversal examples attached. Also chart comparison of late 2010 and now.