Yes we oficially have a breakout, which seemigly has been building since the fall of Jan 22 but definately Apr 1. Next stop $1.25 - $1.35 then little stopping a run upward to $1.80+. I have always loved this stock and even got a slap on the wrist for what was deemed a light ramp, which was fair enough. I really do see the strong possibility of GBG heading over $2 short term, especially after seeing the article on the Chinese value indicator.
Chart says it all.
Nobody wants to miss out!!!!!!
The buyer/s of some 24,000,000 shares just a few weeks ago (if they choose)can now sell for a 50% profit. Hmmm
I'd call it a pole and pennant/flag with a target of 1.70/80 ish, depending on where you think the break up is and the top of the pole.Hi all, new to this forum and first post so Hi.. If any1 can help me out with this chart it would be appreciated. Am i seeing a bullish engulfing pattern?? If so any idea how much it is expected to run? Have only just started looking at charts and am really interested to learn. It went up nearly 10% yest and another 5% today but also had a difference of over 10% today. After reading all the posts and doing research it looks like it could be a good stock.
Hi richo, closing prices are much more reliable IMO. In fact, the way a stock finishes on the day is generally a much better indicator of support from what I've seen. Even though we have to wait for all the overnight noise from OS...thanks kennas, can i ask how u got those 2 lines making the flag sign? r they closing prices? Also is it best to use closing prices or highs and lows 4 resistance/support lines and other trend lines? another good open this morn at $1.39, hopefully another good day. Happily holding gbg
Sharp Move: To be considered a continuation pattern, there should be evidence of a prior trend. Flags and pennants require evidence of a sharp advance or decline on heavy volume. These moves usually occur on heavy volume and can contain gaps. This move usually represents the first leg of a significant advance or decline and the flag/pennant is merely a pause.
Flagpole: The flagpole is the distance from the first resistance or support break to the high or low of the flag/pennant. The sharp advance (or decline) that forms the flagpole should break a trend line or resistance/support level. A line extending up from this break to the high of the flag/pennant forms the flagpole.
Flag: A flag is a small rectangle pattern that slopes against the previous trend. If the previous move was up, then the flag would slope down. If the move was down, then the flag would slope up. Because flags are usually too short in duration to actually have reaction highs and lows, the price action just needs to be contained within two parallel trend lines.
Pennant: A pennant is a small symmetrical triangle that begins wide and converges as the pattern matures (like a cone). The slope is usually neutral. Sometimes there will not be specific reaction highs and lows from which to draw the trend lines and the price action should just be contained within the converging trend lines.
Duration: Flags and pennants are short-term patterns that can last from 1 to 12 weeks. There is some debate on the timeframe and some consider 8 weeks to be pushing the limits for a reliable pattern. Ideally, these patterns will form between 1 and 4 weeks. Once a flag becomes more than 12 weeks old, it would be classified as a rectangle. A pennant more than 12 weeks old would turn into a symmetrical triangle. The reliability of patterns that fall between 8 and 12 weeks is debatable.
Break: For a bullish flag or pennant, a break above resistance signals that the previous advance has resumed. For a bearish flag or pennant, a break below support signals that the previous decline has resumed.
Volume: Volume should be heavy during the advance or decline that forms the flagpole. Heavy volume provides legitimacy for the sudden and sharp move that creates the flagpole. An expansion of volume on the resistance (support) break lends credence to the validity of the formation and the likelihood of continuation.
Targets: The length of the flagpole can be applied to the resistance break or support break of the flag/pennant to estimate the advance or decline.
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