Charting & Technical Analysis

Starting a new thread to discuss Candy Club technical analysis and charting.

Candy Club 6 Month Chart:



Aside from the excellent fundamentals, part of my decision to enter and go long CLB, was that the share price has now double bottomed at 12 cents. Although there can be variations, the classic Double Bottom Reversal usually marks an intermediate or long-term change in trend.



Investors/traders will now be watching for resistance break: Even after trading up to resistance, the double bottom trend reversal is still not complete. Breaking resistance from the highest point between the troughs completes the Double Bottom Reversal. Like advances, these should occur with an increase in volume and/or an accelerated ascent (as in the pic above).

The EMA20, EMA50 and EMA200 are now at 13.3c, 13.9c, and 12.8c, respectively. Closing above 13.5c would thus be a bullish signal that I expect to happen in the next few trading days. A break above 15c would complete the double bottom reversal and suggest that 18.5c will be tested.

Once 18.5c resistance falls, the company is essentially into blue sky territory.

T.E.P.