Recognia "bashes"??? Bioniche Life Sciences Inc forms bearish "Symmetrical Continuation Triangle" chart pattern
Nov 05, 2012
Recognia has detected a "Symmetrical Continuation Triangle (Bearish)" chart pattern formed on Bioniche Life Sciences Inc (BNC:TSX). This bearish signal indicates that the stock price may fall from the close of $0.40 to the range of $0.05 - $0.13. The pattern formed over 103 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price has broken downward out of a consolidation period, suggesting a continuation of the prior downtrend. A Symmetrical Continuation Triangle (Bearish) shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks down below the lower trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior downtrend.
This bearish pattern can be seen on the following chart and was detected by Recognia proprietary pattern recognition technology.
