St Elias Mines Ltd forms bullish "Bottom Triangle" chart pattern
Jun 09, 2011, 4:00 PM ET

Recognia has detected a "Bottom Triangle" chart pattern formed on St Elias Mines Ltd (SLI:TSXV). This bullish signal indicates that the stock price may rise from the close of $1.84 to the range of $2.10 - $2.16. The pattern formed over 18 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

Tells Me: The price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation. A Bottom Triangle shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks above the upper trendline with a noticeable increase in volume, confirming this bullish pattern as a reversal of the prior downtrend.

This bullish pattern can be seen on the following chart and was detected by Recognia proprietary pattern recognition technology.