John, I guess I was wrong about the gap opening and I'll have to temper my enthusiasm for now, as it looks as if there is some more work to be done before we can continue higher.
Notwithstanding, the technical piture suggests that we are in the process of putting in a reverse head and shoulders bottom, which following the kind of decline FNTN has endured, is a powerful reversal pattern.
Secondly, there is a possible breakaway gap under .20 that has been tested a couple of times and the mkt has been unable to get within 5 - 7 cents of there, this is very positive as it now leaves a fairly solid looking double bottom type from which we launched on Wednesday and provides a good base to build upon.
This overall formation still indicates initial price targets of somewhere between .80c and 1.00.
My indicators are in a consolidation pattern today, but should prices resume their uptrend they will flip back to near 7 / 7 or 7 Up status.
In order to illustrate what this means, I will use IBM as an example. Let's suppose the you bought 100 IBM at around 41 - 42 back in 1993, which I managed to do and say you held it all the way to 130 (pre-split) earlier this year. When many were calling a top in IBM back then, I was actually getting a 7 / 7 signal on my indicators. So suppose I had called my broker and asked him to triple my holding by buying an additional 300 IBM effectively at more than three times the price of my original purchase, he might have thought I was being cavalier. The fact is that from that level, IBM exploded higher in a spectacular rally to the 165 level in less than 6 weeks, and still continued to rally after a further brief consolidation and 2 for 1 split to where it is today.
So when I see a developing 7 Up situation, it invariably indicates a strong rally is often about to begin or is at least close at hand.
regds
Tec |
