Monday, May 6, 2013

Interra Resources (47.5 cents) - Top formation underway

This counter is in a top formation, as evidenced by the chart pattern. The neckline of the top is at 41 cents. Within the formation, immediate support is at 46.3 cents, at the 100- day moving average.

On the other hand, short-term stochastics and 21-day RSI are at the bottom of their range, and this should trigger a bounce, for which resistance appears at 48 cents. An earlier break below 48 cents indicated a target of 28 cents, which remains valid. This would take prices below 41 cents, pointing to an eventual target of 24 cents.

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