Bullish Pennant formingMaya Gold has posted more than a double since I've mentioned it in early November and is not forming
Bullish Pennant. This is a continuation pattern typically occurring after a large increase in price. It's a short lived formation that typically breaks out after 10 days with a maximum duration of 3 weeks. The way to trade it is to keep track of the upper trend line and as it pierces that line, with heavy volume, enter with a long position. In the case of Maya Gold & Silver, the entry price should be
.55 or near there. I would like to see a few more days and see how it does when it gets near the apex. As long as it continues to post higher lows, I might take a position in it before as it touches the lower trend line. This would be the aggressive entry and you'd have to make sure you have a stop in place. A good stop might be at
.46 or
.45, or where your stomach can handle. Target on an Bullish Pennant is the vertical distance of the opening of the Pennant. So in this case, we are looking at
.13, making the target on a valid breakout at
.68 for gains of 23.6% from
.55.
See
here for chart and
here for other weekly picks.
Cheers!