Hi cabbie, the reverse head and shoulders was classically formed over the last 7-8 days.Unfortunately I haven't worked out how to publish a chart with trendlines yet, but a glance at a chart will reveal the following interesting characteristics:
From the low at .13 cents on 17/08/2009 till high at .30 cents on 26/11/2009 the stock rallied .17 cents
From the next major low at .14 cents on 6/10/2009, if we add the same size motive wave Eg. .17cents then we get .31 cents...today's close
The next significant low on30/10/2009 occured at .16 cents suggesting a possible resistant point at .33 cents
The next significant support/low region occured around 29/01/2010 at.22 cents suggesting another possible resistant point around .39 cents Eg. .22 + .17cents
I have noticed with many stocks motive waves or the length of price and time that they like to travel in a rally is often repeated as if it is it's habitual nature.
From this perspective and also from the point of naturally ocuuring pivot points at .35 and.38 I would agree with you that these regions would probably provide natural regions of conflict.
On the extremely optomistic side of things you will notice that the longest rally that ckk has done is from the low at .06 cents on 10/12/2008 to the high at.39 on 24/04/2009 ... equivalent to a price shift of .33 cents.
If ckk was to rally this price shift again then I would expect a possible price target of .46 cents Eg. add.33cents to the low at .13 cents on 17/08/2009
In this posting the principle that I am applying to determine possible turning points are pevious rally lengths that the stock has historically liked to move.
This together with obvious resistant points at around .35 and .38 would encourage me to agree wholeheartedly with your suggestions....regards B.Sahib
Add to My Watchlist
What is My Watchlist?