Hi Captain, re Beadell Resources BDR. I won't bother marking up...

Hi Captain, re Beadell Resources BDR.

I won't bother marking up the weekly chart, but I wouldn't treat that pattern as a Butterfly, (although DoubleUp or someone else might consider it so). Although it has that sort of shape, these are major reversal patterns and should occur at the top or bottom of a major move. Price has only just come off a major low and moved into Wave 1, so its the wrong position to really read to much into it as a reversal of the trend. Also, projecting the top of the pattern to 127.2% takes it above the ATH50% level, which if that occurs it's bullish not a reversal. So I'd ignore that pattern.

I've put the monthly up below which is more instructive and is the most powerful chart anyway. This looks bullish. I've marked the completion of the downturn at Wave C and break of the downtrend line (solid orange) and it's moved into Wave 1 up. (It may or may not be at the top of Wave 1 yet).

I've highlighted in light blue shading the resistence it's hit at the 50% All-time High level, very strong, and also the 50% retrace of the prior range. So that's all normal behaviour that's it run up to these levels and pulled back.

The key then is that it only pulled back 38.2%, the minimal amount, before going green again and will likely have a second go now at breaking through the ATH50% level. Once it does this it's blue sky. It's won't drop below it again for a long time.

The only caution is that Wave 2 normally pulls back to 61.8% level as marked more commonly, and only sometimes to the 38.2%. So you need to form some judgement as to which it is, considering the underlying gold price direction or other fundamentals of the stock. Either way it should eventually end up busting up through that ATH50%, so all good.