well it can, but personally i wouldn't rule out a further fib retracement at this point, esp if the markets take a dive.
today closed on the 23% level. next level down is about 36.5c. i can't imagine it would go any lower than that.
i think its important to remember, though, that if it broke out of the channel, it wouldn't be such a bad thing. i mean, we have been kinda stuck in it for quite some time, and the disadvantage of the channel is that it restricts the upward price targets (by the width of any moves inside the channel). on the other hand, it did provide a bit of security.
so what happens if the chart now retraces further, or even just goes sideways? well on the downside, we will all start to feel nervous about whether we should have sold high.
but on the upside, we move into a new formation with much higher targets, because our marker becomes the beginning of the channel, way back at 17.5c.
i will give it a few days to play out first, before i do an update, just to see what kind of new pattern is emerging.
RHM Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
