Allied Nevada Gold Corp., together with its subsidiaries, engages in the evaluation, acquisition, exploration, and advancement of gold exploration and development projects. It principally operates the Hycroft Mine, an open pit heap leach gold and silver mine covering approximately 61,389 acres of mineral rights located in the west of Winnemucca, Nevada. The company is also involved in the exploration and development of various exploration properties, including Hasbrouck, Mountain View, Three Hills, Wildcat, Maverick Springs, and Pony Creek/Elliot Dome projects. In addition, the company holds exploration rights to approximately 100 other exploration properties in Nevada. Allied Nevada Gold Corp. was incorporated in 2006 and is headquartered in Reno, Nevada.
Please take a look at the 1-year chart of ANV (Allied Nevada Gold Corporation) below with my added notations:
After a persistent downtrend, ANV has formed what appears to be a Double Bottom (red) price pattern. The pattern is as simple as it sounds: Bottoming, rallying up to a point, selling back off to a similar bottom, and then rallying back up again. As with any price pattern, a confirmation of the pattern is needed. ANV would confirm the pattern by breaking up through the $30 resistance (navy) that has been created by the Double Bottom pattern.
Keep in mind that simple is usually better. Had I never pointed out the Double Bottom pattern, one would still think this stock is moving higher if it simply broke through the $30 resistance level. In short, whether you noticed the pattern or not, the trade would still be the same: On the break above the key $30 level.
The Tale of the Tape: After a yearlong downtrend, ANV formed a Double Bottom price pattern. A long trade could be entered on a break above the $30 resistance with a stop placed under that level.
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