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Microcap & Penny Stocks : Consoldated Capital Of North America (CDNO) -- Ignore unavailable to you. Want to Upgrade?

To: OLD JAKE JUSTUS who wrote (1038)	1/24/2000 3:50:00 AM
From: Charles Kalb	Read Replies (2) \| Respond to of 1078

TWO MAJOR BULLISH CHART FORMATIONS DEFINED FRIDAY CDNO'S nice 55.8% move up Friday on high volume defined two very important chart formations -- a Cup & Handle and an Inverted Head & Shoulders, both strong bullish formations, take your pick. I had previously reported after Thursday's Close that the 200 MA had been crossed to the upside, itself a bullish occurrence and which supports Friday's move. To see the Cup & Handle draw a line connecting the highs of 8/3/99 (0.095) and 11/29/99 (0.100). The resulting line defines the Lip of the Cup, it doesn't have to be exactly horizontal. Now extend that line to the right until it intercepts Friday's (01/21/00) bar. That will define the Handle. It is interesting that the Inverted Head & Shoulders can be defined with one additional step. Just extend the Lip of the Cup to the left until it intersects the price bars around 07/07/99. That will define the Left Shoulder. The Head is the same as the Cup, the Neckline of the H&S coincides with the Lip of the C&H, and the Right Shoulder is the same as the Handle. These two formations are 6 to 7 months in the making, and it should be emphasized that they normally do not occur at the same time if at all. An initial price target can be estimated from these chart formations by projecting the depth of the Head (or Cup) above the Neckline (or Lip). I see a Low of 0.01 reached on 10/29/99. I used a charting program to extend a vertical line equal to the depth of the Head above the Neckline and arrived at an initial target of 0.185. One can get the exact same estimate by simple arithmetic using the prices given above. Can we hit 0.185 on Monday? IMO it is even likely. If we have another 55.8% up day we will be at 0.187 from Friday's Close at 0.120. Also, if you look at the Close-to-Close for the last four trading days we are accelerating (20.4%, 30.5% and 55.8%). See those white Candlesticks getting longer? So, we might significantly exceed 0.185 if the trend continues a couple more days. Looking ahead we should expect some resistance at 0.23 which was a peak reached on 05/25/99. All this is my humble opinion. My average cost basis is 0.029 and I have not sold any shares yet. Everyone must make their own mind up as to when or how much to sell, but I do believe in this case that holding long will ultimately assist in attaining higher prices.