GPG - Guinness Peat Group (ASX)

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Chart Chat posted this chart in November But GPG did not trigger our entry level. It has since traded back down onto the ascending trend line and is setting up in powerful pattern to break through resistance of $2.19. GPG looks primed to go. The following are my comments from November and are still relevant.

GPG has consolidated for 4 months with rising lows creating an ascending triangle considered a bullish base pattern. With volume picking up indicating an increase in buyer support, GPG on a break of $2.19 would project a target of $2.48 - $2.60.

RDR - Reed resources (ASX)

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RDR has formed an ascending consolidation channel. A break of $0.545 should see RDR continue its uptrend to a projected target of $0.80 - $0.85

MEE - Metex Resources (ASX)

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To have a cleaner look athe big picture for MEE we look at the weekly chart. MEE broke its descending trendline to rally well and has since consolidated for most of 2006. MEE now looks set to continue its 'C' wave up to a target area of $0.15 on a break of $0.091. This scenario is supported by a bullish MACD and stochastics relationship and a compression of the multiple moving averages.

BPT - Beach Petroleum (ASX)

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BPT has consolidated for 4 months within a large equilateral triangle forming a base from which a strong move is imminent. BPT has traded outside this formation hinting the direction will be on the long side. Compression of multiple moving averages and a bullish MACD / Stochastics relationship support that on a break of $1.48 will projet a target of $2.03

RIO - Rio Tinto Limited (ASX)

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RIO has cleared its descending trendline and retraced 61.8% Fibonacci back onto its 200 DMA support cluster. After a small rally off this support level RIO has pulled back to give us a good potential entry point of $76.26 to go long.
Given that its stable mate BHP is still looking quite weak a change in sentiment for large mining stocks should see RIO perform very well with an initial target set at $89.50 - $94.30.

BKW - Brickworks Limited (ASX)

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BKW has broken its descending trendline which represented a correction back onto long term ascending trendline in an overall bullish trend. Having consolidated BKW looks set to swing high on a break of $12.26 for an initial target zone around $13.35 with a longer term new high of $15.28 - $16.50.

CAAS - NASDAQ

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CAAS after 4 months consolidation (bold) has broken resistance to set up a Pennant formation (blue) considered a bullish chart pattern. CAAS has broken out of the pennant and pulled back giving us a good entry point on break of $11.34 for a mirror move of this breakout pattern which targets the $14.40 - $15.00 range.

BAR - Barra Resources (ASX)

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BAR has traded back down onto support and recently broken through its descending trend line alerting Chart Chat that a change in trend is probable. We would prefer BAR to retrace a bit further before breaking our entry trigger of $0.28 for a target of $0.53, however, this stock character is for a rapid move and may not retrace.

HCY - (ASX)

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For variety Chart Chat has selected another small cap stock for readers of this report. HCY has been bottom browsing for several years as this weekly chart shows. However momentum seems to be building with rising lows (arrows) and a bullish relationship between the MACD and Stochastics. With volume on the rise reflecting an increase in buyer support a break of $0.021 would support a price of $0.04. HCY will meet some resistance at the $0.03 level.

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ANE - Auspine Limited (ASX)

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ANE has broken resistance after 5 months of consolidation and retraced back onto support forming a strong base pattern. When coupled with rising lows (arrows) and a bullish MACD / Stochastics relationship a break of $4.45 would project a target of $4.98 - $5.16

FRR - (ASX)

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FRR is a recovery stock in the making. Note the rising lows and bullish MACD/Stochastics relationship. Couple these chart indicators with FRR having broken resistance (blue line) with a pull back onto support gives us a good entry on a break of $0.805 for a projected target of $0.90 - $0.95.

CELL - Brightpoint Inc. (NASDAQ)

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CELL has broken both its primary and secondary descending trend line (blue) and appears to have put in a double bottom (arrows). A break of $13.86 would suggest a reversal of trend and a initial target of $18.20 - $20.00 is possible with longer term $23.00.

ANDS - NASDAQ

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ANDS has consolidated for 4 months to finally break out alerting us to a possible trade. Having pulled back and supported by this very good base pattern ANDS on a break of $5.07 should move quickly up to a projected target and price resistance of around $8.40.

RSP - Resource Pacfic (ASX)

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RSP has formed an ascending triangle considered a bullish chart pattern. It has also spent the last 4 months consolidating (bold). With this base pattern in place Chart Chat expects RSP to climb up into resistance of $1.39 - $1.48 on a break of $1.24

Gold

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Gold is looking to go much higher into the $800 plus territory in the longer term. However for the shorter term move Gold is drifting back onto support having broken through its descending trendline and could drift further back to 605.50 (green). A break of 628.00 though would suggest the retrace has completed and a swing up to 677.50 – 692.00 would be the next level for gold to take a breather. This scenario is supported by the Stochastics crossing to give a buy in the oversold zone.

IAG - Insurance Australia (ASX)

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We take a look at a weekly chart of IAG to give us a cleaner picture of its likely direction. We can see that IAG has spent the last year consolidating (in bold) and forming a equilateral triangle. IAG has broken to the upside and retraced back onto support giving us a better entry point. A break of $5.86 would project an initial target of $6.30 - $7.00 with a longer term target in the $8.00 region.

EURJPY currency pair

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EURJPY currency pair has consolidated for 2 months with rising lows finally producing a breakout. A break of 151.48 projects a target of 153.00 - 154.00

WME - West Australian Met. (ASX)

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Here is another Chart Chat small cap. special called West Australian Met (WME). WME has been consolidating now for 5 months having retraced from its sharp rally by 61.8% Fibonacci onto 200 DMA support. Rising lows finally produced a break of resistance with a nice pull back to give us a good entry on a break of $0.18. WME given the period of consolidation has a target of at least $0.26 - $0.28 and should be quite a quick move.

GPG - Guinness Peat Group (ASX)

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GPG has consolidated for 4 months with rising lows creating an ascending triangle considered a bullish base pattern. With volume picking up indicating an increase in buyer support, GPG on a break of $2.19 would project a target of $2.48 - $2.60.

OST - Onesteel Ltd

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Onesteel Ltd (OST) is poised to break resistance having consolidated for 2 months while maintaining its strong ascending trend with progressive higher lows. A break of $4.44 projects a price target cluster of between $4.70 and $4.90.

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GBPCAD currency pair after 2 months of consolidation has broken resistance and retraced setting up a nice entry to buy GBPCAD on a break of 2.1673. An ascending triangle supported by a bullish relationship between the MACD and Stochastics suggest a swing high to projected target area of 2.2120 – 2.2235 is feasible.