Last week on the CREAF thread I predicted that if we dropped below $18, we'd hit resistance at $16, and that there seemed to be support and resistance every $2 or so in each direction. Well, today we closed at $16 for the second session in a row, after closing at $18 the two sessions before that, and $20 the two sessions before that, and $22 the three sessions before that. So it looks like I'm right about the $2 thing.
This means that tomorrow we should either see $14 or $18 (or maybe $16 again). Intel is reporting earnings tomorrow evening, so it's going to be a couple of busy days for tech stocks. If the earnings report is good, they'll all go up, and if it's bad, they'll all go down. Creaf, of course, will react all out of proportion, and may even go against the rest of the market, as it typically does.
My newest favorite charting technique, Three Line Break, is predicting the start of an uptrend for Creaf if it closes above $18.50, so it recommends a buy at that price, and hold if it closes above $18.50. Based on my $2 theory, above $18.50 could very well mean $20.
Check the end of the trading history on this page for the recommendation: webbindustries.com
Unfortunately, I'm hoping for an up day just to cover my margin calls; I have no cash to buy more.
Doug. |
