ShengdaTech Inc forms bullish "Double Bottom" chart pattern

2008-05-12 16:00 PM ET

New York, NY.   A "Double Bottom" chart pattern formed on ShengdaTech Inc (SDTH on NASDAQ). This bullish signal indicates that the stock price may rise from the close of 9.54 to the range of 11.20 - 11.70. The pattern formed over 40 days which is roughly the period of time in which the target price range may be achieved.

A Double Bottom is considered a bullish signal, indicating a possible reversal of the current downtrend to a new uptrend. Sometimes called a "W" formation because of the pattern it creates on the chart, a Double Bottom consists of two well-defined, sharp troughs at approximately the same price level. The Technical Event® occurs when prices break out above the highest high of the formation, which confirms the pattern.

This bullish pattern can be seen on the following chart.

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