Russ Dratwa Canaccord newsletter likes BIR Birchcliff Energy Ltd forms bearish "Continuation Wedge" chart pattern
Feb 10, 2014
Recognia has detected a "Continuation Wedge (Bearish)" chart pattern formed on Birchcliff Energy Ltd (BIR:TSX). This bearish signal indicates that the stock price may fall from the close of $8.35 to the range of $6.70 - $7.00. The pattern formed over 20 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: After a temporary interruption, the prior downtrend is set to continue. A Continuation Wedge (Bearish) represents a temporary interruption to a downtrend, taking the shape of two converging trendlines both slanted upward against the trend. During this time the bulls attempt to win over the bears, but in the end the bears triumph as the break below the lower trendline signals 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.
