Monday, December 21, 2009

CTFO II

I'm imagining the current run (since July) as a rerun of what we saw starting in March, where we moved through a Fibonacci trading range only to hit the ceiling and retrace before eventually following through in said month of July. Such a move has taken place in very alike fashion since, with the only difference being the more extreme, singular breakout through the ceiling of the trading range followed by an only seemingly stronger pullback (stronger in relation to the extreme high, yet equivalent, ~30%, in relation to the respective ceiling).

In the graph below I've added a conservative trend channel based on parallel lines to the most recent lows. This forms what I would expect to be the moving resistance line to what in the future will undoubtedly remain a very dynamic stock. Keep an eye on the 7.70s which must hold to continue the upward trend, something that there is no doubt about, as this stock is set to go double digits and stay there.



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