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Message: A long term and short term formation in play

This is not the first time I feature Ivanhoe in my newsletter and probably won't be the last... It has been a good trader when the technical setup is just right. However, this week I'm a little perplexed by what I'm seeing in its chart. On the one hand I see an Ascending Triangle which is a continuation pattern (marked by the orange lines) and based on the volume for the last few days, it would appear that it's about to breakout of the formation to the up side. On the other hand, if I look at its peak in early November and draw a trend line to peaks in mid and late January, I can also see an Raising Wedge, which is a reversal pattern, if you use the same bottom trend line.

Often in Technical Analysis you'll find that are patterns within long term patterns and I think this is what we are seeing here. The short term pattern is an Ascending Triangle while the longer term pattern is the Raising Wedge. The play would be to get an entry at this level and play the short term trend for a look see. Short term target would be near $3.80 for gains of 7.9% and if the longer term trend failed, then the next target would be the upper trend line (white line) at $3.90 or so for gains of 10.7%.

See chart here http://us1.campaign-archive2.com/?u=4d6d491aea8e01d93d8a1f390&id=bed418ae1b#IE


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