Watchlist: Versatile - Bullish Pennant Formation?

Versatile Creative almost flew through the roof bet 19 & 28 June based on its shareholding in Iris Corp after Iris was removed from the designated stock list. It is now in correction mode & appears to have formed a bullish Pennant formation. Volume has also fallen considerably adding confirmation to the Pennant formation. A high volume breakout above 0.875 will be a very bullish indicator with a target price of 1.30 to 1.35.

The measurement for this TP is based on the bottom of the flagpole of the pennant @ 0.40 on 19 June and the high point on 28 June @0.88. The gain of 0.48 should be added to the point of breakout, which would be 0.875 giving a TP of 1.35.

Additionally this pennant is also in the form of an ascending triangle adding credance to the bullish stance. A breakdown below 0.845 however, would be very bearish, and the Pennant would not be valid.

One word of caution: as this is clearly a trading stock and possibly syndicated be very cautious and place trailing stops just in case.