primed for a rally ? imo

Well thought I would post up a tech view which builds upon my last post related to behavior before a rally.

Personally, I think there is a "Rounded Bottom/Cup" Formation in play here.... (Chart best viewed in HC wide view)

Basically the recent price action can be delineated to the lower side by a round bottom curve (In Blue below). This pattern of buying and selling behavior is well documented and common and usually precedes a period of intense buying.

Generally you can project a "Initial Target" for the rounded bottom which is basically the depth of the "cup" shape added to the break out point above the cup edge. Sometimes the price action will retrace on hitting the edge of the Cup and retrace down a little (producing a "handle" for the cup) before a strong rally ensues.

The underlying theory is that the whole cup formation is contained within a much larger ascending trend channel and the price action will touch on the upper side of the trend channel ultimately... hence the "projected" target price.

It has occurred before on this stock also as alluded to in one of my previous posts and highlighted below. I say "initial" target as quite often the stock can rally well beyond the "Cup" target price as occurred on AJQ last Dec-Jan

So I suspect a serious retest of the 31c cup edge shortly ... It may break 1st time or may retrace a little (ie, handle) and then break above the 31c area. Once above 31c the upper edge of the cup will become a area of very strong support.

Either way I think there is a high probability that this stock is going higher in the short term.



All is IMHO DYOR to Confirm