weekend charting, page-37

Phatprophit (NUF),

This is one of the most complex charts around. First off 3 years worth. There are 3 active forks, and you can see for yourself how well they frame price. Pay attention to the purple fork, it's handle is not hanging in mid air, it is pinned to the red forks cross. This is known as a modified "schiff" fork. They are used when there is a particularly steep movement in price, and you can see how many times price has tagged that line and reversed. You can also see that price is currently oscillating around that line, so in we go for a closer look.


I have circled in black 3 price islands, one of which was an island reversal. The current island, if it breaks down, will also be an island reversal. These are powerful patterns, and they are showing you that there are some very big wallet players in this game.

Never the less, the forks tell you what the action is and to me it looks like the ML of the Schiff fork has acted as fairly tough resistance. The short term black fork has just had it's resistance tine retested, the tine held and price gapped down on friday, then back tested the ML, then buckled under sustained selling pressure. The good news is that it recovered to hold the $11 mark.

I dont know which way price is going to go, but I would guess that the big volume seller is going to give the red resistance tine a shot. I would say that the idea is to collapse the price to accumulate a big voting stake in order to make the takeover a bit more expensive, but who knows? The price is the price. If it gets to support I will buy it and put a stop under the support tine.