Obviously, the exact moves are my biggest speculation to-date, but they are all based on the prior action and the resulting logic of the chart. However, regardless of the exact moves, if, again, it’s truly a cup, the eventual target is measured and is typically equal the depth of the cup.
Also, notice that should the price reach its target, another cup might shape out with the new target above NGAS’ previous all-time high.
The last but not the least, please note that this is not a trading advice but an exclusively theoretical exercise with a prohibitive level of uncertainty. Should you decide to take any positions along these lines, it is imperative (solely for your own good) that your trades are based on your OWN analysis.
If the price bounces of the top border of the channel and surpasses May 19th 2016 high ($3.101) but a certain margin, there will be even stronger case for this second scenario.
I realize that in this second scenario I’m going against the bearish view on NGAS, expressed by a few very strong traders here but the pattern is the pattern and it recognizes no authorities.
GASL is not quite a cup but is still a bullish falling wedge pattern. In this case the price is expected to bounce off the trendline. The Sep 8 high then becomes the closest TP:
Bearish charts of the opposites of the the two above, are equally supporting the potential NGAS bullish move.
Sliding channel in DGAS:
and the rising wedge for GASX in which, even if the price penetrates the resistance line, it is expected neither to break out of the wedge nor to burn through the declining trendline: