The recent Dragonfly and merged candle shows the over selling is drying up and the obvious Christmas Desert is being crossed.
"Always Assume The Underlying Trend To Continue Unless Proven Otherwise.."
"Never assume that a trend has ended until there are clear signs that the opposite trend has started."
Round One: The Bulls are providing a good support; then bears are unable to break through that support.
Round Two: The Bears come up with a strategy - we let the bulls have their support but we must push the close LOWER.
Round Three: The Bulls protect the support; bears proceed with their strategy...
Round Four: Bears push the Close Lower
Round Five: The Bears try to break the support again - bulls still protect the support. So the price goes up again
Wait for round SIX & SEVEN
Round SIX: Bears Push the Close Lower.. Push near Bull support.. Lower than round four.
Then Round SEVEN: The undefeated BULLS having seen the close so low and near the support - The fearful sell low just like the Bears want. The Bears buy low and are ready to step in with volume and cause a break back up to old highs!
Descending triangle formed.. and ... We are going to see a continuation of the trend or a reversal of the trend that much is certain.
My prediction for what it is worth is that 2 touches will get a third. In other words resistance 1 has had its 3 tags and Resistance 2 has had 2 tags. I'm not surprised to see dragonfly's at the demand line!
What I see is that ROB is oversold and undervalued with low expenses, capital, growing assets in a booming industry in an extremely mineral rich area with multiple credible sites.
Christmas and manipulators have had their way with ROB as the Christmas volume drops to nothing. Christmas is its own special category in the market and is not indicative of interest.
An upwards breakout here would be a very bullish continuation. If a company is undervalued eventually the market adjusts, for example my pick for 2011 ABU.
The bears have taken advantage of the Christmas slump and are happy to buy at the demand/support level:
DESCENDING TRIANGLES consolidate a trend, but not necessarily an uptrend or a downtrend. And the pattern's resolution may be to resume the prevailing trend, or to reverse it. Regardless, the pattern holds a retest of its initial low, while interim highs are increasingly lower.
Volume decreases throughout the DESCENDING TRIANGLE's formation, and its pace increases sharply upon breaking out. The breakout is identified by a break under the lows, or above the pattern's down-trending resistance. This is the key issue for investors in ROB. We all know why it's volume disappeared.
In fact the news flow for ROB and coming out of Mongolia is going to be wonderful in my opinion.
The January Effect is just as strong as the Christmas Blues! ROB has the potential to double or triple in my opinion and seems to love double bottoms and a resumption of its trend!
What is certain is that long term, ROB is set for very interesting growth the first 2 quarters next year.
PS - This research is for fun and learning. I like the trump power of Fundamentals over the TA. The market undervalues companies all the time. All of my thoughts and opinions could be wrong! DYOR!
Kind Regards
ROB Price at posting:
1.6¢ Sentiment: LT Buy Disclosure: Held
