Good for a trade here I thinkAm I too late on this play? If you look at the chart and see a Descending Triangle, then the breakout target would be the width if the opening of the triangle, and in this case it would be a target of
.14 giving us a possible high of $1.41 ($1.27 as the breakout point plus
.14). So if this is what you see in the chart, then don't play this stock on the pattern as it has already reached its measured move on a Descending Triangle. However, if you see a Bull Flag with the base of the flag being flat, then the breakout value of the pattern is
.52 giving us a measured move from breakout at $1.79 or still will to give us 27.8% gains on the play.
Technical Analysis is all about probabilities and what you see in charts. As you start to look more and more at charts and try to identify formations and trading patterns, you start to get these 'gut' feelings about how a stock is trading. It's like any other skill you develop over time, at once point in time you just 'know' (based on experience and the statistics that you mind subconsciously develops) that a situation just looks right. And I think that Gold Standard Ventures is possibly one of those.
So the play here would be based on probabilities of at least doing a 2:1 trade. Meaning, you willing to lose 1 (5.7% loss) in order to make 2 (12% gains). So the first target I would place on this is at $1.56 to give us our 12% gains with a stop loss at $1.32 for the 5% loss. I am looking at this trade as a swing trade (3 days to 3 weeks) for a potential high target of the measured move from a Bull Flag formation at $1.79 for a total of 27.8% gains.
See chart and other weekly picks here
https://us1.campaign-archive1.com/?u=4d6d491aea8e01d93d8a1f390&id=0853829514#GV
Cheers!