attention pie re cxy techs

Hi Pie

Had a look at CXY from several perspectives.

On a tech basis it appears to have topped out in a nice five wave move. Wave 1 at 0.06, W2 at 0.045, W3 at 0.21, W4 at 0.16 (with an ABCXABC to complete again at 0.16) and W5 at 0.26.

From there it is now doing a Major 3 wave downwave, but from what I can see it is early days yet and has a long way to go (sorry - not meant to be a downramp; just call it as I see it).

The thing that worries me is the possible formation of a Head & Shoulders pattern. Left shoulder to 0.21, head to 0.26, and yet to form the right shoulder (should come in around 0.215 at a guess. The neckline from this (if it forms - big IF still) is around 0.17, which, if fully formed then broken, gives you a downside target of 0.09. Sorry.

Fundamentally it has struggled with equity issues and is unable to source funds from elsewhere. Cash burn rate is ok, but relatively low cash reserves appear to be restricting the capex side of the balance sheet (from first glance). I haven't taken a "micro" look at the company, but from a pure "bankers" viewpoint it's not exactly setting my heart on fire.

Good trading stock though. Volumes have picked up nicely, but now appear to be tailing a bit. Really needs vols to be sustained above 30mm (ish) to keep trader's interests.

Would I touch it - perhaps. But ultimately I think I would be very wary if it tests 0.215 and then heads towards that 17 neckline.

Hope this helps.

Kit