John, I tried to E-mail this to you but it bounced back....
You have a rectangle formation....the base sits at 7.00, the top
sits at 7.50....You have a breakout from the rectangle chart pattern,
even though volume isn't confirming it yet....Here is how I would play
this one...
Many times a breakout from a pattern is a false alarm...Below is a way
that you can safely confirm the genuineness of the breakout......
Expansion Breakout formation:
1) Today must be a 2 month high....It was!!!
2) Today's range, high minus low must be equal to or larger than the
largest daily range of the previous nine trading days...It was, it was
52 cents...
3) On Tuesday attempt to put a limit buy order in at 7.72....If the
stock hits this level and triggers your buy order, it will confirm, the upward trend...However, if the stock retreats, and does not hit 7.72, you had a false breakout from the pattern....
Downside on this stock is the 7.00 area...If the stock closed below
7.00, and if I had a position in this stock, I would dump
immediately....
My CCI indicator crossed the +100 line today and is bullish...Reading
stands at 125....MACD is not giving a buy signal yet, but looks like it wants to confirm soon...The +D1 and -D1 crossover triggered a buy on this stock sometime ago.....Not much volume in this one....
Take care, Mark |
