Hi Jim,

Thanks for your comments I am glad you like the site.

I took a look at the chart of PDN which I have included below:


I do not have access to a good charting package with ASX quotes so I am stuck using Yahoo finance but we will do our best here regardless. In my opinion as I outline in my lesson on the head and shoulders pattern, this pattern is valid only when found in uptrend as it is a reversal pattern. So at least on this chart I am not seeing the head and shoulders although it may show up more clearly on a chart with a shorter time frame.

Secondly on the chart here I show that the RSI was oversold but has since turned up and is about to touch the 50 line, which would in my opinion be more of a bullish sign than a bearish sign.

If you do see the stock trade back down to $4 then yes this could be considered a double bottom depending on how sharp the movement is if that does happen.

The pattern on this chart that jumps out at me however is not any of the above but the triangle pattern which I have outlined on the above chart.

If there are any other thoughts on this one feel free to post them below.

Best Regards,
Dave