Manfuzu, EMU is a very illiquid stock, which makes TA a bit...

Manfuzu, EMU is a very illiquid stock, which makes TA a bit shotty, but certainly not altogether useless.

I cant see a cup and handle in the recent price action at all on the weekly bar chart. It looks more to me like a base on top of a base that has just rolled over and broken an uptrend line on increasing volume. Not a good look IMO, but still, in comparison to previous volume, its not being sold down very hard. Acc/Dis backs this statement up by showing postivie divergence which means accumulation. It may just need a bit of a sideways base before the next leg up, time will tell.

On the daily chart, the price action on Wed Oct 21, looks suspiciously like a blow off top. A stock that almost doubles in 4 days is certainly "erratic" and I wouldnt be putting too much faith in it sustaining anything like that, hence the failure of the uptrend line on the daily as well. She just looks overdone to me and in need of some serious consolidation.

On the daily Stochastics they are making lower lows showing a loss of momentum. I would want to see the stochastics break that down trend along with price.

RSI is showing negative divergence. Nuff said.

So where to from here? It looks to have decent horizontal support around 18c. It bounced off here nicely on Friday, but the lack of volume is a real concern. This is where it can be misleading with illiquid stocks. Basically the most recent weekly bar chart is showing a drop out of a trend line on increasing volume which pretty much tells me this stock isnt going up in a real hurry and will either consolidate sideways or reverse in trend. Also the bounce of Friday looks suspiciously like a countertrend pullback on light volume before it may continue down. I would be waiting for a pullback and see if it can hold 18c before I bought it.

You can also see on the weekly chart how price tends to bounce off the 10 week EMA and price has now broken through that as well. Also have a look at the large saucer type basing pattern under the orange horizontal line. Then the little handle on the side. A break and close above that handle was a sweet entry IMO.

[URL=http://img682.imageshack.us/i/emuweeklyvolume.png/][/URL]

[URL=http://img43.imageshack.us/i/emuaccdis.png/][/URL]

[URL=http://img35.imageshack.us/i/emustochastics.png/][/URL]

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