In my opinion, yes, it is a continuation flag. Because its been going on for a while its important to look at the weekly chart to get an idea of the overall trend. When we talked about the ascending triangle last week, this is a type of pennant/flag. Pennants associated with short term consolidation (5 to 15 trading days) whilst flags can go out for some weeks (case in point at the moment is NWS).
Alexander Elder would say you should look at the weekly chart first and the daily chart is subordinate to this and should only be used for picking entry and exit points in the overall trend. I think this can be a bit fraught for smaller speccy stocks, but the length of the consolidation pattern in this instance makes the weekly chart more important.
Using the Elder method, the stock would pass on the weekly chart and then the decision would come as to what is the top and bottom of the trading range. The bottom has been pretty clearly set at 12.5c the top is pretty clearly 15.5c. Buyers would best be served picking up the stock at 12.5c and hoping it breaks the 15.5c resistance. If it doesn't, they lose nothing when it bounces downwards, as they know the support at 12.5c is strong and the overall trend is upward.
ZNO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
