CAI Chart - technical analysis, page-24

The longer term uptrend support line seems to be currently sitting at about 65c. This is an indication where increased buying support should occur causing a bounce and continuation of the uptrend.

However, if the stock price breaches or goes down through the support line at market close, it is bad news as it indicates the reasons for buyers buying the stock have changed. It is telling us something is different that we do not know about. In that case we would likely see a rapid increase in sellers and a new lower support level will need to be found. Perhaps at 57-60c. Having said that, it is important to note that the support line is an indication to buy and care should be taken not to anticipate the price breaking lower than the support line as this is dangerous. As the buying support trend line is upward sloping, as time passes the buying support line price will get higher.

Also, technical analysis (TA or charting) is an art and sometimes called the market voodoo. TA ignores fundamental analysis (expected future company profitability etc). It is used and relied on heavily by traders and fund managers to tell them when to buy, hold or sell a stock in the belief that only new information that we don’t already know, is what changes the underlying stock price, not information everyone already knows, as the stock price would already be there.