The resistance (heavy waters) may be the gap (to be filled ?) between $5.40 and $6.40, but more importantly
breaking the downtrend line at $6.40.
I would add to my position on the $6.40 break out.
I guess this rally doesn't count as a "dead cat bounce" as it has been up more than two days. But in my chart analysis,
it does count as a "double bottom" (11/27;$4.50; 12/16 $4.50) BULLISH AND a break of the "down trend line", at $5.80. (after three closes above that point).
1. You should NOT trade on the first hour's movement.
2. More important if it CLOSES below the 200 day moving average.
3. It is ABOVE the 50 moving average.
Chart wise, a downtrend line (resistance) would be broken when the stock clears $6.50. To be certain that this breakout
is for real, wait for a three day close above that point.
I've had a position in this stock for some time and have also been buying on the way up. Cost $8.80.
On my charts, it's up against a resistance line at $7.60. On the way up it has hit this line two times and subsequently retreated $2. Sold 1/3 position this AM. Still acting very strong though.
If you are referring to the unfilled gaps, especially on the upside and off of an ascending triangle (mid Oct.2013) are bullish and DON'T have tone filled. The Nov 19th gap is in the same category. What does concern me short term, is the break in the support line at $5.10. There is a horizontal support line at $$4.45 that also failed.
I would hope ZHNE now holds in the $3.80-$4.10 area.
How bout forming a pennant ? A flag is generally price action in two parallel lines sloping downwards, but I get the idea. This usually indicates a continuing trend.
We filled , Buy above $10.55.Until either company denies or confirms the story. it is just a rumor.
Some people find it difficult to buy when a stock makes a correction.
Broke out of a pennant formation at $6.00. Trades above $6.50 would be very bullish on P&F chart.
Am I missing something ? The recent gap was in Sept 2011 between $9.50 and $10.50. That gap was filled
in late January of this year. The stock recently cleared a double top in Aug 2011 and the next resistance is $17.25.
Sentiment: Strong Buy