TLS chart, page-270

Been away for a while distracted by other stocks. As discussed recently by posters, the formation of the past 3 months is a descending triangle. Certainly not a bull flag. And descending triangles are bearish patterns.

The duration of the formation is perfectly within the average range of 1-3 months, with today being exactly 3 months since the peak on 23 August.

The formation also has the characteristic contracting volume as shown. The volume has gradually fallen off the past 3 months during the formation, with a rise up just recently during the breaking of $3.00.

What is needed now is a return to the breakdown level of $3.00 and a rejection. The price goes back up and touches $3.00 again but can't get back above. Then that is bad. It kind of confirms the formation. The downward move then resumes in earnest. In other words, the breakdown level of $3.00 formerly support, now becomes resistance and we drift lower.

The only thing that will negate this formation now is a sudden and strong move up of 5-10% in a day. Possible, but it should have happened by now or should happen as soon as possible.

For now, I wouldn't be surprised if TLS went down to do a double bottom with June low of $2.60. A double bottom would be a good thing and a necessary thing here and the final thing that would get TLS out of the downtrend of the past 3.5 years. As seen in late 2010 and early 2011, it was a double bottom that led the way for TLS to go from $2.55 to $6.74.  This sick stock needs to bottom and a double bottom would do it.

An important feature to note today is the Fibonacci level of 0.618. The stock has now perfectly retraced to the 0.618 level of $2.91 (I had drawn this yesterday but didn't have time to post it yesterday).

I have included a few similar chart patterns where the support line was broken and the chart drifted lower. One is a currency and the other a small resource stock. But doesn't matter, the formation is the same. In both cases, there was a rapid exponential rise, then a descending triangle of weeks, months. Both cases, support was broken and lower levels finally arrived.

I still think this management team needs to go. TLS has been ill since this management came into place.

By the way, the target price of this formation comes out to be exactly $2.60. Taking the rise height to be 0.40c and subtracting this 0.40c from the support line of $3.00=$2.60.