the duks fibonache/tech analysis on the way, page-2

Unfortunately was unable to attach a weekly chart with a fibonacci overlap or a daily chart with bolinger bands.
Albooey has been annoying all day about doing this report.
Registered with photobucket but was unable to bring up the images URL's.

Most stocks are either a growth or value model stock. Although some are neither. Our Intermoco is a value model, consisting of 4 major stages. Currently on a weekly chart we are in a classic stage one accumulation pattern. For albooey's benefit the the fibonacci is a little uninspiring. The current accumulation pattern is occurring well before the first fibonacci retracement level at 38.2% based on a previous high of 6.9c. What is more interesting though is that after we made a non classical double bottom with the second bottom higher over March and April last year we had a stellar rise over 7 or 8 consecutive weeks just to see the stock make a considerable pullback into it's current range.

The weekly chart now is displaying far more potential this time round compared to the previous false start. From a technicians perspective this can easily be explained. The previous rise was off a very weak base of a 2 monthly period. This time will be different. It's base/accumulation pattern is showing a much stronger formation so far we have a 7 month base which is still forming. At this point though we have not got a MACD-Histogram divergence happening. A very strong buy signal which may or may not form. Weekly prices are now starting to whipsaw above and below a 34week exponential moving average which has most importantly flattened out. The longer and stronger this stage one base the more upside potential there is in the price. When the 34W ema starts rising unlike the dailies it will be game on.

Now for albooey's benefit again. He has been nagging me saying what about the bollingers and the RSI's. Personally I'm only interested in the dailies to fine tune the entry and exit points.
The bollinger bands with a standard deviation of 2.0 on a daily chart is nothing to write home about. Disappointingly there is no sign of band squeeze or contraction indicating a breakout is unlikely. Both upper and lower bands are keeping a relatively equal distant apart while heading down with the price tracking the lower band.

Now the RSI on a daily chart. I prefer a 7day RSI signal which is very sensitive to fine tune entries. Currently the 7day RSI is at 34 not quite oversold yet. look for a tick up off the 30 line. There is a slight positive divergence of RSI and also on the 7 day stochastics which is in the oversold area now. I find from my charting experience the stochastics sometimes do lead the RSI with signals.


Sorry Albooey, I just love this line

Anyway that's my 2 cents worth !