icn chart _ 090810_whats in store, page-4

HI Ray Ray,

EMA - Exponential Moving Average.

There are lots of price moving averages that chart technician's follow. I learnt my charting from two posters in hotcopper, namely Selmax & Robbbbbb, these guys tend to follow the 41 day moving average & 195 day moving average.

The EMA's give you a picture of the trend in the stock. If I mentioned that we captured the 41 day EMA, implies that the stock price moved above the 41 day EMA. And subsequently this average becomes support for the stock.

The resistance is expected at the 195EMA, as this is the longer term average of the stock (Roughly six & a half months). However like any resistance, once this is captured, this will become support.

So the EMA 195, is expected at roughly 32-34 cents range, and if the stock is starting to move up, then you can expect the stock to reach this average.

Hope this helps

Cheers
Mayo