TA: Tanzanian Royalty Exploration Corp (TRE)

Technical formations are often a function of threes. "Three drives to a Top" and Three Taps and Out are technical heuristics that represent the interaction between price and volume.

Three Drives to a Top: DXY


While support and resistance zones are set by price, they are controlled by volume. Volume, the fuel or kinetic energy that drives the trend, is often foolishly ignored or overshadowed by price.

The volumes which we have been discussing are least liable to mislead when manipulation prevails, for the manipulator is obligated to deal in large blocks of stock, and must continually show his hand. A complete manipulative operation on the long side consists of three parts: (1) Accumulation, (2) Marking up, and (3) Distribution. In the case of a shorting operation -- the distribution comes first, then the market down and the accumulation. -- Richard D. Wyckoff

TRE are is nearing completion of three taps and out of Barron's gap resistance (reference of Barron's gap: http://jsmineset.com/.). Volume was strong during the gap formation, likely the last stage of the mark down in size, so the energy required to break it must be equally strong during accumulation. A breakout can come with two types of confirmation. A sign of strength, or volcanic energy release, which is characterized by a price jump of resistance on heavy volume. The other is slow and steady bulldoze similar to the force within a glacier. Time and energy eventually crushes the resistance into submission.

The US dollar and Gold-Adjusted TRE charts suggest that the mark down phase is nearing an end.

Three taps and out: TRE

TREGLDR