As you can see from the chart below, the Alumina share price has been under a lot of pressure for some time but with the formation and subsequent upward breakout of a symmetrical triangle it may see some renewed attention from the charting fraternity. The first thing to consider here is that the symmetrical triangle can hit target without there being much in the way of a breakdown of the prevailing downtrend. Take a look at the different aspects that we need to consider:
The normal method of setting price targets with a triangle setup is to measure its height and then extrapolate it out from the point of the breakout. In this case I would say the height of the pattern is $0.10 which would make the target price roughly $0.80.
Interestingly though if it manages to meet this level it will be right on the low side of the 200 day volatility band which I have drawn on the chart. You can see that the previous peak in the price in early June respected this level and then started moving lower once more. A breach through this level will be worth watching as it will attract a lot more bullish momentum if it can be held.
As I said in the title, the triangle formation is a bullish move towards a new trend but it represents only the first step towards a trending move so I suspect that traders will be very cautious until such time as we can make a concerted move through the volatility bands.