Here's the chart... [ATTACH] I have annotated some key levels....

Here's the chart...



I have annotated some key levels.

If you step back and observe you can see how price came reverted to back-test the breakout day (18/12/15) and after successfully testing commenced the next leg up.

Price has finally broken out of long and boring resistance range below which it was doing it's side ways tango all this while. It has broken through with high volume which is also again very positive.

But up ahead you will see the area I have marked as support where the bulls dug deep and tried to support price about the time this entered distribution. So there will be some stale bulls who have been waiting patiently to break-even and exit. But then again there is an argument that most of the overhang might be flushed out by now considering the prolonged drown trend and turbulent macro conditions, where some just took the losses and existed on the way down/during the sideways period.

Looking forward, there is bound to be a pull back, a cursory glance at the stochastics would indicate a bit of a bearish cross brewing so expect a dip soon.

What I would be looking at is for a dry up in volume when this occurs and for price to pullback on very soft volume where it will try and hammer out and confirm valid support at $0.40 and once this is successfully tested you could expect the next wave of big buying to come online and mark price up again.

But having said all this.... we know the company is expected to make a minimum of 4-5 announcements within the space of a few weeks, so all these "observations" could be all rubbish depending on a lot of other factors and could easily be rendered redundant and price could just keep running till it hits $0.55...now I know we would all love that. There also could be sell into any news, but will be curious to see how that plays out as the newsflow is expected to continuous over the next few weeks, so it could well play out that buyers would actually swoop in quite aggressively during the early rounds of these releases.

The bottom line however is that as I mentioned earlier this is looking white hot at the moment...with plenty of media and other attention on it. With expected news concerning re-occurring future cashflows from multiple new sign ups waiting in the wings to be announced...the market is definitely re-rating CVT.

All the best.