TSX:ATH Athabasca Oil Sands – Looking Weak…

athabasca oil sands

The embedded image in this post is of Athabasca Oil Sands (TSX:ATH). Note how a valid Gartley pattern gave a sell signal at the $14 level. Price continues to sell off from this signal.

How low will it go is the next question.

A reasonable prognosis says that the current leg starting from the sell signal at D will conclude such that the current leg is a multiple of XA. This multiple will be based on 0.328, 0.618 or 0.786 of XA. At current, the 0.618 multiple is odds on favorite which projects a bottom at or near $8.29.

Watch ATH carefully. If it hits the $8.29 level and bottoms, we will have a buy signal and the starting point for a new Gartley pattern.

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