current situation

Hi Folks,

I just posted the following on the CDU thread after a comment by SSkim regarding CVN. I thought it was more pertinent to the CVN thread than the CDU thread - so I'm also posting it here. I hope it is of some interest.

Hi SSkim,

Just a couple of knee jerk reactions to CVN.

To me, it currently looks seriously "over-bought". Just one indicator as an example - daily RSI is over 80 (70 is the usual marker for over bought) and turning down.

Yesterday's trading looked like exhaustion trading after a long run up of about 2 months and a move from about .45 to .70. A good move.

The candle yesterday gapped up after that big run up - suspicious in itself - but then the candle was a "tombstone" doji. A reversal day on good volume - not a good sign.

Today has gapped down from yesterday - leaving yesterday's candle as an "abandoned baby" - strengthening the case for an exhaustion day yesterday.

Its still early in the day - so those comments on today's action are contingent comments. Anything could still happen today to negate those comments.

Also, one day's trading does not make a trend (as I've stated before as a cautionary comment).

However, the action of the past three days is not looking bright at this stage.

A confirmation of a break by the indicators needs to occur.

This could just be the start of a sideways to slightly down consolidation - one only knows for sure as it develops and the indicators give direction.

The share price has been very positive on an intermediate/long term basis. So any pull back might be a great buying opportunity.

But I, for one, would wait and see how this plays out.

I'm not familiar with the CVN fundamental situation. (And I'm not a great fundamental analyst.) You may be more au fait with what has been happening there, and have a good feel for its situation.

Just judging by the intermediate/long term chart - it must have sound footing. So a pull back here and then bounce would be very positive.

To back the longer term situation, the weekly MACD has just gone positive - a big plus for further upward movement in the share price if a pull back here occurs.

Apologies to CDU'ers for this post about CVN on the CDU forum.

Cheers
Red