Major Drilling Group International Inc forms bullish "Double Bottom" chart pattern
Jan 15, 2013
Recognia has detected a "Double Bottom" chart pattern formed on Major Drilling Group International Inc (MDI:TSX).
This bullish signal indicates that the stock price may rise from the close of $11.69 to the range of $14.50 - $15.10. The pattern formed over 128 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 after failing to break through a support level and ultimately rising higher in a sign of reversal to a new uptrend. The Double Bottom pattern forms during a downtrend as the price reaches two distinct lows at roughly the same price level. Volume reflects a weakening of the downward pressure, tending to diminish as the pattern forms, with some pickup at each low, less on the second low. Finally the price breaks upward above the highest high to confirm the bullish signal.
This bullish pattern can be seen on the following chart and was detected by Recognia proprietary pattern recognition technology.