This chart shows the price movements of Questerre Energy Company (listet at Oslo stock exchange in Norway and Toronto stock exchange in Canada). My question is about the flag-formation at the end of the chart. Can someone comment whether the formation is a valid flag formation? Why or why not. <img src="http://i612.photobucket.com/albums/tt210/andreasmoen/qecflag.jpg">
1) We all know that Toronto is in Canada. 2) A flag should be more horizontal. The pattern traced out since the large gap-up day earlier this month can simply be called a shallow correction instead. 3) The daily volume and daily price ranges have been declining. That's what you would normally expect. Even better, the lowest it should go is the high from January of this year, either $4.00 or $4.01 per share (Canadian currency, not Norwegian).
Thanks for the feedback, nazzdack. I agree that the declining pricemovement seems to steep downward, but at the same time i've seen different formations. The pricehistory of Questerre probably shows a better flag formation in december 09. Most of the formations i've seen, is as that. It also reaches target and developes exactly according to flag formation rules. When it comes to the gap in march, I have a feeling that it is a breakaway gap (extremely high volume) and will never reach the support at the hight in january. The correction happening at the moment is also at relatively low and declining volume, as you also state. <img src="http://i612.photobucket.com/albums/tt210/andreasmoen/qec.png">