Bolero Recourses has posted a confirmed breakout of a Bullish Pennant Pattern today with above average volume. The pattern is a continuation pattern occurring after a large increase in price. The chart clearly shows the increase in price and bounce off the trend line. Now, as I think this is indeed a Bullish Pennant breaking out it could actually be a Bullish Rectangle Pattern with a slant on it. In either case, the result of both patterns is a drastic increase in price. In the case of the Bullish Pennant, the measured move is the width of the opening of the Pennant. In this case it would be a move of $0.53 - $0.355 or $0.175 cents placing the target price at $0.625 ($0.45 + $0.175) for gains of 38.8% from the breakout price of $0.45.

If it is forming a Bullish Rectangle Pattern, you would want to see high volume at the resistance level of $0.52 as it breaks out of the formation. If there's hesitation at that price level, consider selling your position and re-evaluating, or holding with a stop loss price at $0.49.

Patterns and formations is what makes Technical Analysis such a great way to invest in the market place and that is the reason why I created a series of Chart Pattern Flash Cards to help you identify these pattern and trade then successfully. Each of the 20 cards in the set includes a commentary on the pattern, its success rate, the duration and expected volume of the pattern and tips on how to trade the pattern. A must for any Technical Analyst who wants to take full advantage of chart patterns and trade them properly.

You can see chart here.

Cheers!