Instant Analysis: CMGI
In response to your questions about CMGI, I can only say that fundamentally, I think the company has a lot of hurdles to overcome, and it is not clear whether it has long-term viability. Of course, I am a technical analyst, so I'll get on with it here.
First, let's have a look at the swing chart of CMGI:
ispeculator.com
There are two IF > THEN scenarios that we can figure from this chart. We have observed that it has made a series of lower lows and lower highs since November, in a downtrend.
This week, it is testing the December high, and if successful, it will be the first swing making a higher high in some time, and an indication that a change of trend might be underway.
That said, it may also fail on this test of the previous swing high of around $8.00, in which was, a test of the January low will be the next step.
For more information about swing charts, please see the following:
ispeculator.com
If CMGI can pop up over the next couple of days, we can call this a right shoulder in the making, in a head and shoulders bottom pattern on the daily chart:
ispeculator.com
Intraday, everything hinges on how this triangle resolves, inside the gap from last week. It is interesting to see two days of such a narrow intraday trading range:
ispeculator.com
Teresa |
