It always amazes me that posters generally fall into 2...

It always amazes me that posters generally fall into 2 camps....those who think the stock is going to the moon without any scary retraces along the way and those who think the company is a dud and will ultimately fail. I would like, if I may, offer a third alternative. I think 1PG has the potential to be the next Linked In but short term it may have gotten way ahead of it itself. The recent rise was a technical break out of a cup and handle pattern. Back when 1PG was sub $1.20 there were only a few of us who cared about it. Then on Friday night on 27th Feb (click here) I said 3 things. 1. That 1PG might be about to shoot to $1.70 2. That it could happen very quickly 3. That it would probably take a fundamental event to trigger it........

.......and what happened?? On the Monday we got that kick ass presentation. On the Tuesday morning the Amazon deal was announced and by Wednesday 1PG hit a high of $1.69 and I was goneski. But my self adulation and back slapping only lasted one whole day and 1PG was off and running again like the juggernaut that it is. I did not publish my next target which was 1.95 based on 1.618 x the cup depth.....but that level got brushed aside like it did not exist. My next target was $2.29 based on the chart below and that is where 1PG was stopped in its tracks. This might be a good time to highlight the ongoing discussion that Golf Zoner and I have had about charts. Clearly I got some things right and tragically, for me, I got some things terribly wrong. So readers can decide for themselves whether the charts were useful or a hindrance.

So the question now is how far might 1PG retrace. I guess anything is possible. If more good news come then maybe it will turn around and start heading up again. But it would pay to remember that the price breakout was a technical one and so was the ultimate target. Accenture has about 2 and a half times the employees that Amazon has yet when that news came out 1PG only managed a spike of about 15c which quickly faded over the next few days. I am not saying it will happen but punters should be prepared for the possibility of 1PG going all the way back to retest the breakout at $1.30. If you don't believe this is possible then have a look at ELD's chart. It had a similar cup and handle pattern and broke up to 1.618 x the cup depth (which admittedly is less than what 1PG did as 1PG's breakout was nearly 2.618 x the cup depth). ELD then spent the next several weeks in a downtrend and ultimately retested the top of the cup. That doesn't have to be 1PGs fate but punters should just be aware that these things do happen. If it does I will be a buyer again and I am guessing by that time there would be a lot of disgusted holders who held all the way down. Please note that these are just worst case scenarios I am offering and I am not suggesting that such a heavy retrace is a done deal.