trade4profit, page-4

oaftar,
I know nothing about the company but have looked at its chart out of curiosity. First impressions are that its a very volatile stock with small volume so its hard to have faith in whatever trends or patterns that seem apparent. However, it can clearly be seen to be in a downtrend. There are three s/r lines of significance, namely 24.5c. 21c and 19.5c. The most significant of these atm is 19.5c.

The major patterns that seem evident are both a recently established downward trading channel, and a bullish downward sloping wedge dating from 13th Jan 2006. The bullish wedge is the more significant as the downtrend channel is not well established.

It is possible that CEO is currently reversing from its downtrend. The evidence for this is: CEO closed above the 19.5c resistance line, from below, on Friday; there is bullish divergence on the rsi; the signal line on the macd has or is at the crossing point on the way up; the rally over the past three days has been on increased volume (but not record volume).

Against this, the stock has not yet broken through its downtrend line to the upside, and the volume while still good started to contract on Friday, thus not confirming the price hike on that day.

All in all, if I already held the stock I would continue to hold and watch closely. Any fall below the 19.5c support level should be treated very suspiciously. If I was thinking of buying into the stock, I would wait a little longer for a break of and close above the current downtrend line, with confirmation on the oscillators.

As said at the beginning however, with small stocks trading on small volume its hard to have faith in patterns and levels. Single orders can have major impacts on the sp and any patterns or trends that seem evident to the chartist. Further, microstocks can respond excessively to general market moves. In line with many microstocks, its not a good place to be in a downtrend or economic contraction (specially if it doesn't pay a divvy).

Hope this was useful. My opinions only. Read the red stuff below.

cheers!