For the last month, IOC has been tracing out an almost perfect ascending triangle formation -- flat top highs, rising bottom lows and progressively declining volume.
The formation usually results in a thrust to the upside, with an amplitude approximately equal to the widest part of the triangle formation -- in this case about $12.
This action would propel the stock to the $90 level, where is it likely to consolidate.
The breakout from this formation is likely to be happening in the near future and it is interesting that we're at the end of 1Q and the beginning of 2Q, when substantial funds tend to enter the market.
Although the Ascending Triangle interpretation is now a little "messy", there's another interpretation that may well be even better.
A cup and handle formation seems to be quite evident, although the right side of the cup is a little low for my taste. However, typically the handle slumps a little more that what is evident -- and that fact is QUITE BULLISH, indicating considerable strength to come. The sellers just haven't been able to do much damage with any of their efforts.
The initial thrust out of the cup and handle is likely to be on the order of $25 -$40, depending on whether the depth of the cup is measured from the left side or right side of the cup. In the $25 case, the target is $100 +/-; in the $40 case, the target is a full breakout over $100 to the $115 +/- area.
Suffice it to say, IOC has held up quite well this week, avoiding getting creamed along with many resource stocks. That should bode well for the future.
Some kindling needs to be lit.
I have often rejected the notion that IOC trades on technicals, but I agree with how it has held up here recently. very encouraging. Yes, someone light the fuse please. We all want it NOW NOW NOW, but patience is hard when such good things are on the horizon. My broker told me this morning that he believes it's time to back up the truck, meaning add whatever I can. I glowingly took his advice. May be the last we see of the double digits before we go to triple digits.
Good luck longs
Sentiment: Strong Buy
The Golden Cross of the 50-day SMA over the 200-day SMA will occur tomorrow, Wednesday.
The Ascending Triangle is still intact, with the lows bouncing off the 200-day SMA.
A resolution needs to occur relatively soon, as the formation is vulnerable to a high volume breakdown -- which would presumably accompany real (as opposed to phony) bad news on the deal front.
Meanwhile, volume and volatility continue to dry up as would be expected in the current chart formation.
The Ascending Triangle is still intact -- although getting somewhat strained.
Of particular note, is that the Golden Cross should be happening on Tuesday -- with respect to the 50-day SMA crossing above the 200-day SMA. This is a good sign.
We'll see what happens this coming week.
Despite yesterday's downside action, the ascending triangle formation is still intact.
Even a shallow retest of the 200-day MA will not violate it. In addition, the 50-day MA is closing in on the so-called "golden cross."
So far, so good.
excellent observation VS. My work concurrs. Its great to see that IOC is finally going to fulfill its promise. There is zero doubt the resources in total make IOC worth at least 10 billion. Thats conservative.
Sentiment: Strong Buy
You haven't seen anything yet. draw a five year chart using weekly time series. Note the "coiled spring" we are in 72-78.. Yes, its an ascending triangle, one of the most beautiful I've ever seen...get ready ahead.....
Good call VS! Actually, there is a much bigger ascending triangle that begins back in early November of 2008. Top is at about $90, base connects the lows in Nov 2008, Nov 2011, Dec 2012 and Feb 2013. Very bullish formation!