Pennant or Symmetrical TriangleEither a Bullish Pennant or a Bullish Symmetrical Triangle is forming on Forsys Metals. The only real difference between the two formations is the amount of time it takes to form. With a Bullish Pennant the average duration is 10 days with a maximum of 3 weeks to form, while the Symmetrical Triangle takes a minimum of 3 weeks to form. In either case, the breakout is to the up side on high volume to pierce the upper trend line.
It should breakout at around $2.60 on high volume. So keep this one on your watch list this week. The indicators are in the "Undecided" zone and could easily turn upwards from here. The only overcast I see with now the steep 200SMA line looming overhead. This will be the first real resistance as it breaks out of the Pennant or Triangle. It has failed to break it on its last two attempts. You would want to see a confirmation candle above the 200SMA once it post a close above it. Remember, the 200SMA is a very strong magnet and I have it on all my charts.
See chart here and other weekly picks here.
Cheers!