Following on from the discussion today on the previous blog entry, here we have a possible inverse head and shoulders formation as identified by Gary. This is, of course, conditional upon price returning to the "neckline" and then breaking through.I've shown here how we would calculate a target from such a pattern - we take the difference between the top of the head and the neckline (vertically) and the plot that from the breakout point (which I've just put there for illustrative purposes).I've also drawn a horizontal line which could be another iHS but this one seems unlikely to me.I'm not sure of this is exactly the form Gary was talking about but I'm sure he'll enlighten us later on.From my own point of view, I'm not a big fan of H&S formations unless they're really clear and the neckline is fairly horizontal. Anyway, we just about hit the 61.8%...

This type of penny share is extremely hard to analyse and even hard to get right due to the long periods of no price movement followed by huge spikes so I wouldn't read too much into this post (a request).Clearly the short term trendline broke but a low formed near the 61.8% Fib (could be a permanent or temporary low) so I've drawn a new trendline there.IMHO it needs to hold that low of 0.7p from a couple of days ago or it could easily go back to that gap at 0.45p or even lower.For me, this type of share is either an investment on fundamentals or a gamble. Occasionally a decent looking chart develops. Spreads and slippage on stop losses can cause nightmares in these but if I'd bought the 61.8% Fib (I didn't), I'd have stops just below that 0.7p level. If it works out, where it goes...

I've zoomed in to the daily chart here in order to show the detail of the Fibs. We've already seen how the downtrend channel provided support and today's price action suggests that a higher low formed today which is a positive sign.In fact, when we look at the Fibs on this we can see that the 61.8% Fib came into play perfectly this morning and it strongly suggestive of a wave 2 low. A close at the day's high confirms the bullishness of this and a break of 384.7p would create a higher high to follow the higher low we may have had today.All in all Original link...

26.5p is still proving to be tough resistance on a closing price basis as SXX hasn't managed to achieve this since 8th May.There could be a symmetrical triangle in play here, or possibly (perhaps more likely) an ascending triangle with a top at 26.5p.Supports and resistances remain as before although the main downtrend resistance has slowly dropped and is now near 28p. Original link...

Having had the hammer off support and a backtest of the previous support area at 69p, we now need the current level to form a higher low if this short rally is to continue.The RSI looks promising but until this has that higher low and then a higher high we can't be sure of anything here. I'm still long with my stop just below 63p but I'd really like to see that 69p level taken out now. Original link...