| SUNW, the charts. I use TC2000. Use a weekly chart, Zoom 2. Keep it simple price on top, volume bottom. The chart will show 2002 - present. Set scale = 16.62% I focus on Price. First thing you should see...the 3 tops...'03,'04, and '05. Note they retrace ALL gains. The 2nd thing to note, Ascending bottoms. Note the '06 move. Change of character. It did not retrace 100%. This time the 12/05 breakout area holds. Note the '06 move to the high does not completely retrace either. I'll call that confirmation of the change in character. Now look at volume. The 10/05 - present should stand out. Volume is up. Especially positive volume. Buyers have begun paying more. If Price tops $5.87 1st target is +/-$7.97. Let's switch to a daily chart Zoom 3, 3.59% scale. This chart shows 6/05-present. I use 20,50, and 200 exponential Moving Avgs. to verify trends on my daily. Note the bullish alignment. Again place volume on bottom. Look at that reversal on volume 10/05. 11/05? Tax Selling/Capitulation. Expand your daily to include January '05 it is obvious. If the trade triggers @$5.39 I place the stop +/-$5.05. Positive Money Stream divergences in weekly, 3,2, and daily. No conflict with TSV. Now we wait. Yes, I could be early. Smarter to wait for $5.88? Dunno. I weigh that against missing the entry on a high volume up move. The Buy Order is in. I wait. If I'm wrong it won't trigger. |
