OT? Hi, HC. Right you are!! -- A perfect tip-of-the-flag formation, suggesting a major move very soon . . . which way, however, remains the operative question. (Of course, today's late-afternoon weakness can be dismissed since it's on very light volume.) Also notice that the stock at about $2 1/4 - 2 3/8 is in the lower quadrant of the Bollinger Band (which has been been in a tightening trend given the shrinking volatility of late, a very bullish sign), with the Stochastics now strongly suggesting a bottoming pattern following the recent retracement to the strong historical support level in the $1-$2 area. Even more importantly, the recent move above $2 has penetrated the short-term moving averages as well as the downward-sloping linear regression line on the upside, and the relative strength line has now turned up following a nine-month declining phase. Perhaps most important, though, is that the MACD (moving average convergence/divergence) lines turned positive at year-end 2000 and remain so. Also, notice the perfect inverted head-and-shoulders pattern being traced out over the past six months . . . a move to the neckline (at about the $5 level) now seems inevitable (which, fortuitously, coincides closely with the 200-day moving average overhead resistance level). As you know, this should then lead to a one-third retracement back to about the $3 1/2 - $4 area, followed by a decisive move back to/through the neckline and the high probability of a continued strong and quick run into the historical twin-peak heavy overhead resistance area in the $9 - $10 region. After that major trend-reversal formation, it's anybody's guess what could happen. And lastly, as if we needed anything more bullish, all of the gaps have been filled!!
But then, I'm no chartist.
Definitely OT -- I'm sleeping better now . . . thanks for asking! The little guy (now 2 1/2 months) has been out cold for about 7-8 hours the past few nights -- a new record!! |
