Tanzanian Royalty P&F Chart Analysis

TRE is hitting a downward trendline (the downward sloping red line from lift top to right lower above the columns)

We have a bullish alert column (XXX column at the right, because the bottom X is higher then the bottom of the next XXX column to the left)

We now check the next bearish alert column of O's (the 3 OOO between the nr 6 and 9) to the left and move right from here to find the next bullish alert column.

It is the same column we started out with (often the case)

This gives us our price objective: 4.25 (top box of the column) minus 3.25 (box below the column) times 3 (reversal amount for the chart)

That makes 3 plus 3.25 (bottom box nr) is 6.25.

Which is incidentally where the longer term downward trendline from the high in 2006 (10.50) to the top in beginning of 2009 (7.0) comes in play.

Notice my price objective is 25 cents lower then the charts. I like a margin of safety and I like to do the handy work myself.

Now let us expand on that:

If we have a bearish reversal at 6.25 it should go to 6.25 - ((2/3 of )6.25 minus 3.5)) makes 4.50.

The price objective from there is 4 - 2.25 times 3 = 5.25 plus 4.50 makes 9.75.

Allowing for my margin of safety to start with, well then be at the all time high.

I wont be trading before we are post 20 dollars. Trading is like work.

Smiley.