We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of BioFuel Energy Corp. (BIOF).
As always I hope you are having a GREAT week !
This week let's take a look at BIOF, a lower priced stock, that looks to have great upside potential.
BIOF made an explosive rally off the last lows, and has since traded lower and consolidated.
On the big move up the monthly MarketClub Trade Triangle turned green, and has stayed green during the whole consolidation, which I consider to be a sign of strength.
The weekly MarketClub Trade Triangle recently put in a green Trade Triangle on January 31, 2013, and currently all 3 Trade Triangles are green, which makes the MarketClub score +100, which is bullish !
BIOF looks to have made a classic Head & Shoulders bottom, and if BIOF breaks out above the neckline that would complete the pattern. A Head & Shoulders is not a completed pattern until the neckline is broken through.
So BIOF looks to be on the verge of a move higher, definitely making this a Chart to Watch.