June 4th- C.CNA - Canadian Mining Co.
The following reply was made to Charles H. Marsh about mid-morning June 4th but was not out up at Solid Play Trading Report web site
A day or two ago I saw in Silicon Investor that Penny Stock Guru has come out with a buy on this stock, so I thought it best to get this to thread, as well as update the site.
With yesteray's (June 4th) closing price data updated in the indicators, there are two bullish and one bearish indication(s).
The price is till hanging above the 28-day moving average looking like it might bounce off of it to the upside.
The Force Index (which tracks price AND volume remains bullish. The MACD (which is a price moementum oscillator) has turned bearish.
Taking all three together, and noting that the Force Index can indicate longer-term strenght even in the face of a short-term momentum
downswing, it would appear the stock is a good candidate to hold, provided the price does not begin making its way seriously lower.
Solid Play
Reply to Charles Marsh:
My apologies for missing the timing of the Technical Analysis of CNA. Please note that this is a technical analysis only -- the fundamentals of the company are not dealt with, as the assumption is that the "story" is reflected in the chart patterns and price action already.
1. Momentum - Price momentum turned upwards and a MACD crossover occurred back on Apr 22nd when the price ranged between 59 and 65 cents, closing at 65.
2. However, it was not until May 9th that the stock price moved above its 28 day moving average.
On this day it traded between 54 and 59 cents. The next day (the day we would have been signalled to BUY,
because we would've waited for the closing price on the 9th to signal us what to do on the 12th) the price traded between 58 and 80 and closed at 75 cents. 80 cents has been the HI for the period.
3. Price Momentum is just that - momentum of the price...it does not take into consideration what volume is occurring within the price action.
4. The Force Index combines volume and price. Between Mar 31 and May 8th, the bears were in control of this stock according to the Force Index. After May 8th the FI turned bullish and it remains so at this point.
The typical BUYing criteria relative to the Force Index is to BUY on the first weakness within the Bullish Trend. This - according to the indicators math, would've occurred May 20th, where the stock could've been picked up for 60 to 65 cents, closing at 64 cents.
Subsequently, the stock could've been sold within 10 trading days for a 10 to 14 cent profit.
5. Right now, the stock has lost price momentum for the moment; however, the Force Index remains bullish and should be considered the overriding Indicator at this point. That said, the price is ready to cross downwards over the Moving Average and the MACD shows momentum weakening...and therefore, unless there is positive movement in the next few days, the Indicators would be telling "Traders" to exit the stock on any strength.
6. These Indicators are designed to capitalize on short duration Trades; it may well be that the stock drifts for a week or two and then flashes another BUY and then Triples in price. These indicators would get you in again with a new BUY signal if that were the case.
7. Lastly, Indicators are not infallible. They foretell price often enough to be profitable, and they do this by "tipping you off" based on underlying price and volume action in the market, which is reflective of the strategies which are being employed with the market and the sentiment of the market AT THE TIME. If something occurs to Shake this situation and, say, the sentiment of major players turns drastically...the Indicators will not perform as well.
Regards,
STAY TUNED AND TRADED WELL...Solid Play
---------
DISCLAIMER: The Solid Play site, information, and reports are for informational and entertainment use only. Neither Solid Play, nor its principals purport to be advising site visitors in any manner whatsoever, and make no claim to be qualified investment advisors. Solid Play or its principals or associated parites DO INVEST in the securities mentioned in this forum,
but never more than $ 10,000 in any equity. |
