RE:Descending Pennant Formation At the end of the day a breakout to the down side to which I mentioned we are witnessing, has not been confirmed yet. However, a breakout is imminent as the pennant has now closed.
If the breakout is to the upside, which I am assuming it will be judging by the past 4 days candlesticks, then the price should move the length of the pole of the formation. In this case it is 0.13c worth, from 0.025 to 0.15 to which that would put us at 0.195 for a target for the next leg up. Again, that should begin anytime now if not first thing tomorrow morning.
Indicators and events to take note of are as follows:
Tomorrow the 50 sma crosses above the 75 sma...bullish
75 sma now acting as support
MACD at the zero line
Upward divergence on both the slow stochastics and the williams R
RSI however is still trending downward
The stock is heavily oversold at this point
If on the other hand it breaks to the downside we will definitely take out 0.045 and fill the gap at 0.02c....either way we find out tomorrow or the day after.
Pole and Pennant