In my Technical Update for November 3rd, see here, I pointed out that SLAM Exploration had recently formed a Descending Triangle pattern and that this was a bearish continuation pattern. And exactly at the apex of the triangle it dropped to the next support level at $0.16.

In the newsletter I suggested an entry at $0.17 as this was the top of the previous red candle and it would give us hopefully confirmation that the price had revered coming off the support line. Indicators were in the oversold area, marked with the red circles in the chart below, which provided two additional confirmation points for the swing trade. Yesterday's high of $0.20 was just shy of the next resistance at $0.205 which will be the next hurtle to break. This will be a big one, but if it does break, we're looking at $0.26 in a no time at all.

A recent non-brokered financing, see story here, was done at $0.21 and warrants are priced at $.025 for the first year after the financing and then at $0.40 for the second year. So if the people who are participated in this financing are going to get into their money, the share price needs to be above $0.25 in the first year and reached $0.40 in the second. There'll be many more opportunities to do swing trades with slam in the next two years, but I'm interested right now in this swing trade. It looks good and if $0.205 break it will be another 26.8% gain in a short period.

Click here to learn more about a Descending Triangle and visit my site to read about a Technical Analysis course I offer to help you start understanding these chart formations and candle stick patterns. The course steps you thru several chapters building upon the knowledge you've learnt and shows you how to create effective scans to find your own stocks to swing trade based on your search criteria. The course is an online interactive course. Click here to find out more about the Fundamentals Of Technical Analysis course.

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All the best to you and happy trading!