Nicola Mining Inc forms bearish "Top Triangle" chart pattern
Jan 15, 2013
Recognia has detected a "Top Triangle" chart pattern formed on Nicola Mining Inc (NIM:TSXV).
This bearish signal indicates that the stock price may fall from the close of $2.56 to the range of $1.95 - $2.10. The pattern formed over 37 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 top, showing signs of reversal as it has broken downward after a period of uncertainty or consolidation. A Top Triangle shows two converging trendlines as prices reach lower highs and higher (or stable) 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 down below the lower trendline with a noticeable increase in volume, confirming this bearish pattern as a reversal of the prior uptrend.
This bearish pattern can be seen on the following chart and was detected by Recognia proprietary pattern recognition technology.