First it coincides with the 200 day MA which in the past has provided a great bounce off mark.
Secondly, it coincides with the support line picking up the lows on 30/1/04 and again on 16 & 17/2/05.
Thirdly, the daily RSI is sub 40 based on current price of $9.33. For CML historically this warns of a recovery rally in the short term.
Add to the above that that UBS's analyst has a price target in the high $10 range, then you know it can't be too far from the bottom right now. I might of course be wrong but I often find that when three prominent indicators like these all point to the same number then they usually have some validity.
Hope that answers your question.
If it fails to hold 9.25 then your call should prove right.
Cheers
CML Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)