XAM.ASX - Double Bottom, now a Triangle/Flag. This looks like a very promising setup. I should note, it is worth zooming out on this chart to see the full view of it because the down sloping trend line has a lot to play in this setup.
The double bottom has passed which is a reversal pattern, and the Triangle has now come up which is a continuation pattern. It is important to note that both of the chart patterns are of similar size which helps to validate the move. With the Triangle we are now waiting to see if it crosses the down sloping trendline. If we get this happening, it is likely we will get a pop to 0.083, and a retest of the trendline and the current resistance level. If the retest only goes as far as the trendline that will be very bullish, however we will keep our expectations tempered.
You could start accumulating here, but I'd rather wait to derisk and see if it can break and hold 0.065 and start buying there, or of course, buy some now and buy some more later. Up to you. The stop level is 0.047, and the initial target is 0.165. That makes a 25% risk for a 150% gain.
