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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: the Zwei who wrote (5041)	8/5/2005 7:11:48 PM
From: chowder	Respond to of 13449

>>> What do you see happening with CCJ now? Is there more downside? <<< I don't know at this time. When price hit the 50 day moving average, you had two groups of people motivated to buy. Shorts who wanted to cover off major support and aggressive longs who like to buy off the 50 day moving average. It's too soon to tell if the bulls have enough strength to offset this price drop. >>> What would signal a buy at this point <<< Since the 20 day moving average is so close to the 50, a low risk, high probability set up would be to buy when price gets back above the 20 day moving average. What would make this a low risk trade is that once price gets above the 20 dma, it then becomes support. If that support breaks down, you get out immediately, minimizing your losses on the play. Daily chart: stockcharts.com[h,a]daclyiay[d20050505,20050805][pb50!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G If the price continues down, the next major price support level is the 100 day moving average which would equate to the 20 week moving average on a longer term chart. The second buy set up would be to wait and see how price reacts in that price range. Weekly chart: stockcharts.com[h,a]waclyiay[d20040505,20050805][pb50!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G I don't know anything about this company with regard to their fundamentals. Maybe there is something there that inspires your need to want to own this one. From a technical point of view, I'm concerned about the negative divergence in money flows on the weekly chart. They are providing a strong signal for a further drop in price. Take note of where money flows were on the weekly chart when price was at $28 and note where they are now with price at $45. With money flows going negative at this point, it would suggest that buying CCJ as price is rising would be a better reward to risk play than trying to anticipate buying off support. This could change in the coming week but, that's how I see it today. dabum