Trinidad Drilling Ltd. traded below a falling trend-line for about one year (dashed line) and then settled in a bullish technical formation known as a Duplex Horizontal, which is made up of two trading ranges, where the second is higher than the first (dotted lines). Recent price action suggests the stock is on the verge of a breakout from this pattern; a sustained rise above $7.50-$7.75 would confirm the breakout and higher targets. Only a decline below about $6.50 would be negative. A rise above $7.50-$8 would signal targets of $8.50 and $9.50. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
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