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Tuesday, March 13, 2007

WME - West Australian Metals (ASX)

WME has formed a large equilateral triangle and is at a point where a directional move is imminent. Equilateral triangles can produce false breaks only to reverse direction quickly so any trade should be accompanied by good risk and money management. Recent trading activity suggest the likely breakout direction will be up on a break of $0.185 for an initial target of $0.25 and may trade well beyond this point longer term.