Semafo Inc. declined from $10.48 to $1.23 (A-B) below a falling trend-line (dotted line) and below its falling 40-week moving average (40wMA). After a one-half recovery rally to $5.48 in 2014 (C), it settled in a large descending triangle formation made up of lower highs and constant lows near $2.50 (dashed lines). The recent rise above the top of this pattern signalled renewed investor interest and the start of a new up-leg (D). A better entry may occur toward $4.50, but only a sustained decline below $4 would be negative. Point & Figure measurements provide an initial target of $6.50. Higher targets are visible.
Chart source: www.decisionplus.com.