february 15 ccc charts

Hi All,

This evening I'm going to have a brief look at what has happened over the past few days, and hopefully explain in laymen terms why these current prices are a very safe entry level for topping up or to jump on board as a new investor.

Last week I discussed that the stock would either consolidate around the 8cent level, or come down and test support in the mid 7s. The market has decided to go with the later option, but that is not to say that the stock is now placed in a precarious position; in fact I am led to believe that it is sitting up nicely waiting to bounce.

On the daily chart below I have highlighted why there is some very strong support at 7.5c and 7.4c respectively. For the dreamers out there hoping to catch the stock at lower prices, 7.1c is also strong support, but on the indicators chart I will explain why the stock should not drop to those lowly prices. While it is a concern that the 50EMA has failed to hold up as support, the trendlines speak for themselves, and they are screaming out signs that the stock has (or is very close to being) bottomed out.



Below are the daily indicators and while the MACD seems to be lagging everything else on the chart (e.g. it is suggesting that the stock is still in a bearish pattern), the stochastics really can't go any lower than where they are at the moment, and the volume today was something that the volume analysists such as Funky and Mitta would sit up and take notice of.


Overall CCC is nicely poised to bounce from around these levels. It has been a frustrating few weeks watching the stock slowly drop from above 9c to 7.5c, but things will begin to look alot more bullish over the next week or so.

As a final note, don't always take the market depth as an indication of market sentiment. I'm sure most of you realise that a significant amount of the offers in the sell queue are alot further up the price chain, closer to the 10c mark. While the bid side might look a bit weak, we only have to look back to previous rallies to see that this can turn around remarkably quickly in just a few short days.

Have a good week everyone!

Regards, 5hareholder.