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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Paul Kern who wrote (44358)	5/25/2005 10:20:34 AM
From: kodiak_bull	Read Replies (1) \| Respond to of 206338

Paul, There are a couple of positives on the CPN chart, but several negatives as well. I wouldn't get too far ahead on this one. Positives: it has put in a sharp and rounded bottom, the entertainingly named "Adam and Eve" bottom. It has one higher low from the bottom (actually part of it). It is challenging the 50 dma for the first time in months. And that's it for the positives. Negatives: It is challenging the 50 dma for the first time in months. It has barely budged from a downtrending chart on the daily; all other time frames are negative, solidly negative. As we look up on the chart there's not only resistance at the 50 dma, but at the 2.50 level and the $3.00 level. This thing hasn't been a $5 stock since early '04. I wouldn't expect an easy trip back to those levels. The chart needs work; it can be traded here, and bought for the long haul by those who are confident 1) the company will survive and 2) they can wait it out. For those who'd like a higher probability, lower risk play, I'd suggest waiting for the chart to straighten itself out, probably in the 2.50 to 3.00 area and buy there. No sense shorting or buying puts on a $2.50 stock. You could also sell the Jan 06 5.00 puts for $3.00. A run into the $3.50 level or so would bring some good profits; worst case you own CPN for $2.00. Selling the 2.50 puts for 90 cents here brings you less money and lowers your risk. Worst case you own the stock for $1.60. Kb