The convergance on the Silverado daily chart continues around the .005 price range with the share price finishing the week @ .0052 and both the 20 day moving average and the 200 DMA sharing the same point @ .0051 The price consolidation continues as it forms a classic pennant flag with the base of its mass starting @ .0025 and its top @ .0085.(see bottom part of page for definition of a pennant flag)

This past week the share pice has been building a good support level above the 20 DMA and the 200 DMA as noted on the chart

The RSI Indicator has cooled off from its over bought heated position (above 70) and has returned back close to the neutral position 50, finishing the week @53.

The MACD Indicator could be close to completing a upside down pyramid below the neutral line. I will be watching closely in the coming weeks for the development of the MACD as the Black line makes another attempt to cross back above the Red line signaling a new positive price momentum on the chart and most importantly I'll be watching for the "Golden Cross" when the 20 DMA moves above the 200 DMA line.

Silverado Daily Chart link http://www.freeimagehosting.net/uploads/a737eeeb3a.jpg

$$ Ka-Ching Ka-Ching $$

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DEFINITION FOR PENNANT FLAG

A Pennant (Flag) follows a steep, or nearly vertical rise in price, and consists of two converging trendlines that form a narrow, tapering flag shape. The Pennant shape generally appears as a horizontal shape, rather than one with a downtrend or uptrend. This behavior appears on a price chart with the initial price spike forming what technical analysts refer to as the "mast" of the Pennant, followed by a triangular pennant shape [to the right].

Underlying Behavior

This pattern is effectively a pause in an uptrend. The price has moved ahead of itself with a steep rise; therefore market activity takes a break before continuing the uptrend. This pause is reflected in the decreasing trading volume. Similarly, a spike in volume marks the resumption of the uptrend.

Volume
As the Pennant develops, the volume tends to decrease. Martin Pring notes in his book, Technical Analysis Explained, "a pennant is in effect a very small triangle. If anything, volume tends to contract even more during the formation of a pennant than during that of a flag." However, as with Flags, when the Pennant completes you will often observe a sharp spike in volume. Duration of the Pattern

In his book, Technical Analysis of the Financial Markets, John J. Murphy identifies that Pennants and Flags are relatively short-term and should be completed within one to three weeks". He also notes that by comparison, the bullish patterns take longer to develop than the related bearish patterns.

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DEFINITION FOR GOLDEN CROSS