Please post any charts here that look as though they may be in or about to breakout, or reverse their previous trend.

If possible, please paste the chart into the thread.

This one is Global Natural Energy (Formerly Middlesex Holdings) and I have been watching for a few days, as the price has soared.

It MAY be retracing a tad now, so looking to see if it will reverse, or carry on the uptrend.

Dragon Oil may be worth keeping an eye on!

Dominos pizza bump and run reversal. About to accelerate on the run, results in July. Did the same last year, run from lead-in line at 79 all the way to 103p.

As the name implies, the Bump and Run Reversal (BARR) is a reversal pattern that forms after excessive speculation drives prices up too far, too fast. Developed by Thomas Bulkowski, the pattern was introduced in the June-97 issue of Technical Analysis of Stocks and Commodities and also included in his recently published book, the Encyclopedia of Chart Patterns.

The pattern was originally named the Bump and Run Formation, or BARF. Bulkowski decided that Wall Street was not ready for such an acronym and changed the name to Bump and Run Reversal. Bulkowski identified three main phases to the pattern: lead-in, bump and run. We will examine these phases and also look at volume and pattern validation.

Lead-in Phase: The first part of the pattern is a lead-in phase that can last 1 month or longer and forms the basis from which to draw the trendline. During this phase, prices advance in an orderly manner and there is no excess speculation. The trendline should be moderately steep. If it is too steep then the ensuing bump is unlikely to be significant enough. If the trendline is not steep enough, then the subsequent trendline break will occur too late. Bulkowski advises that an angle of 30 to 45 degrees is preferable. The size of the angle will depend on the scaling (semi-log or arithmetic) and the size of the chart. It is probably easier to judge the soundness of the trendline with a visual assessment.

Bump Phase: The bump forms with a sharp advance, and prices move further away from the lead-in trendline. Ideally, the angle of the trendline from the bump's advance should be about 50% greater than the angle of the trendline extending up from the lead-in phase. Roughly speaking, this would call for an angle between 45 and 60 degrees. If it is not possible to measure the angles, then a visual assessment will suffice.

Bump Validity: It is important that the bump represent a speculative advance that cannot be sustained for a long time. Bulkowski developed what he calls an "arbitrary" measuring technique to validate the level of speculation in the bump. The distance from the highest high of the bump to the lead-in trendline should be at least twice the distance from the highest high in the lead-in phase to the lead-in trendline. These distances can be measured by drawing a vertical line from the highest highs to the lead-in trendline. An example is provided below.

Bump rollover: After speculation dies down, prices begin to peak and a top forms. Sometimes a small double top or a series of descending peaks forms. Prices begin to decline towards the lead-in trendline and the right side of the bump forms.

Volume: As the stock advances during the lead-in phase, volume is usually average and sometimes low. When the speculative advance begins to form the left side of the bump, volume expands as the advance accelerates.
Run Phase: The run phase begins when the pattern breaks support from the lead-in trendline. Prices will sometimes hesitate or bounce off the trendline before breaking through. Once the break occurs, the run phase takes over and the decline continues.

Support turns resistance: After the trendline is broken, there is sometimes a retracement that tests the newfound resistance level. Potential support-turned-resistance levels can also be identified from the reaction lows within the bump.




Chart for dominos. Last year we had a bump and run. This year similar lead-in trend line, expecting the same.

Beaufort International BFG -- I post this with reservations as have been in it before, not to my profit, but there is certainly a break on! Vicious spread

Fisher James is a well managed marine specialist company with a good dividend. Chart has just broken out

Jules,

Good spot, looks interesting!

Jeles,

here's the 3 year chart, and I guess the next move is critical, as it has met resistance. RSi seems to be starting to move downwards.

Hidefield HIF. The chart doesn't look much till you spot the bit at the right hand end! Currently quoted 3p-3.75p, I am in from 2.55 ho ho. There is some kind of deal in the offing, maybe announcement next week. Possibly a FSU gold play as flagged in the annual report.

Pursuit Dynamic PDX. The amazing steam powered pump. Note huge volume the other day, apparently Durlacher clients getting in plus a small share issue at 29p. Pre-breakout candidate IMHO.

PS the chart understates the volume, it was actually about 7 million.

Maybe worth keeping an eye on ?

Patrick,

Re pursuit, i hope you're right because I hold!

Actually there is a decent possibility of some forthcoming news, and if they can release some decent revenue generating news, I would expect PDX to rerate.

I still think the mass market could possibly be for the pollution free outboard motors, but they are clearly concentrating on the pump side at the moment.

Andy.

Yes that volume convinced me about PDX Andy, I have got some already and will look to add. Gosh this is getting a bit rampy isn't it.

Re PYM, good one Mark, I had some but stupidly sold.

A closely related company GWP, similar story, revenue stream from new licensing deal with Bayer BUT dependent on regulatory approvals for the cannabis drugs. I feel the chart pattern may provide a buying opp fairly soon.

This one is too easy, JKX Oil and Gas, cash generative, pays divi, PE about 5. Recently drilled a new 2600 metre well on one of its Poltava (Ukraine) fields and got about a 30% uplift in production capacity.

Well I liked it enough to get back in at 24 and 25 having foolishly taken profit at 22.

Pursuit again. Broke out to 35.5 mid today, 34-37 spread, the chart may not show it yet (?)

I think it is distributing but via traders who have stepped in. So, hot money in there but likely to keep moving. 50p resistance at a guess.

William Hill.
=================

PAtrck,

Yes volume and interest seems to have increased in PDX.

Tomorrow could be intersting!

Hi Andy. It turned out to be a quiet day for PDX. Some of the "hot money" seems a little flighty.

HIF (mentioned above) continues its run, most oddly into selling. The MMs seem to be upping the bid to prize loose quite small holdings.

Little to report with JKX.

Avocet Mining AVM has had two strong days, a true breakout I think. Currently quoted 34-36 (I wish these charts didn't lag a day). It's very good that it has done it with a rising 150dma.

patrick,

I hold AVM too!

Am considering a top up, results are due end of July, and small cap mining stocks seem to be back in fashion again.

One of the more interesting charts at the moment. If it breaks down through 125p....next stop 80p IMO. If you are a happy bull, watch v. closely.

Never really understood the charts until now! (Altough not 100% sure that what I think they are showing is what I think they show!!!)

Please keep posting - Its great these "eureka" moments!!!!