Forum Archive Index - July 2001

["Michael Phillips" <michael.p@paradise.net.nz>]

From: "Phaedrus"

> Over the last 18 months CEN has been forming a classical
> Ascending Triangle formation. These are created when the
> upper trendline is flat, and the lower trendline is rising. This
> indicates that buyers are more aggressive than sellers. This
> formation is commonly part of an uptrend, and is considered
> a continuation pattern. It can occur, however, as a bottoming
> pattern, as is the case here. The pattern is Bullish whenever
> it occurs, meaning it is usually followed by a breakout to the
> upside. This happened on 6/7/01 when prices closed above
> $3.09 for the first time in 16 months.

A big "Thank you" for the graph and analysis.

I'm assuming that in a normal Ascending Triangle formation the upper
trendline has some degree of inclination, whereas with CEN the incline
was nil (until recently).  I suppose one rationale for the sellers
becoming
less aggressive is the fact that over time a number of the initial
shareholders have quit in disgust, and those purchasing them are more
comfortable with their holding.

Regards
Michael
===



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