check out the chart. last wednesday was our big volume double-bottom, which hopefully signals the end of the 'sell the news' pressure. thursday was a confirmation day making a higher high and higher low and we also closed above the 40 sma for the first time since we sold off... however, we did pullback and close below the 20 sma. makes sense, we needed a place to pause since we have to go back and re-test the 40 sma. so friday was the re-test of the 40...we held. today's move up on bigger volume, closing on high of day sets us up nicely to make a move higher and break out or this consolidation. notice the rsi is now north of 50...bullish macd is turning higher, and will cross the signal line we've got the 13 and 20 sma's sitting up at .47 acting as resistance but i think the strength of an upward-sloping 40 will help bust through these averages. sitting up above, .52 may act as resistance for a day or two but we should be starting to make a move up to test the downward-sloping resistance line of the symetrical triangle. that sits at .64 as of tomorrow but i think we most likely 'tag' it at .62 sometime next week. of course, the other side of the coin is the 20sma acts as resistance and takes us lower, back to the 200 sma which sits at .36 don't think this will happen though. hey, anyone notice the 150 cross the 200 the other day? very bullish longer term
so that's alot of mumbo jumbo, but as far as tomorrow goes...we are looking to test .49 and possibly .52 by wednesday. i think we will be saying 'goodbye' to the .40's after this week.
Thanks again Peterman for your continued analysis. Certainly hope we break out of the .40's and into the .50's and not into the .30's like IC has predicted. Looks like we're headed in the right direction. If you have the chance could you take a look at HDY. A friend of mine bought this recently @ .50 and is still holding. I think he should have taken a profit by now but he tends to get greedy. Where do you see this headed?
HDY had a helluva run. i would tell your friend to take his costs out here at 1.30 (looks to have possibly put in a double-top at 1.30 if he takes his costs out and it keeps going higher (to that 1.55 - 1.70 range) sell the rest of his shares at that point. it will certainly pullback very soon and he will be able to buy back in much cheaper. I would be looking to start averaging back in around .99-1.01 area first, then .80 - .85 area if it gets there. that stock put in a 'wide range doji' candle today which shows indecision as to the next move. most likely scenario is big pullback tomorrow. i think we'll be seeing a run like this with ftwr. i think wednesday was the start of a much bigger move to come. last time we put in a double-bottom, we rallied about 100% in a month from .34 - .69 or so. hope so, 'daddy needs a new antenna for the truck' lol