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 Gold Customer
Joined: 12/2/2004
Posts: 28
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The chart of CNTY shows what appears to be a W or double bottom pattern. What I find strange is that it is occurring as the stock has reached new highs instead of at a bottom.
Am I correct in my observation, is this unusual, and what if any is the significance of this?
Thanks
JP
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Registered User
Joined: 12/8/2004
Posts: 11
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It does look like a double bottom, but considering it is coming at the top, I think than nullifies that analysis. However, in some respects, it also looks like a cup and handle formation, with the cup being a little odd shaped. I am going to watch it, and if it can break out above $9.40 to $9.50 on good volume, I think it is a great buy.
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Registered User
Joined: 12/8/2004
Posts: 11
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Today was the day to buy. Breakout above $9.50 on high volume. Looks like clear sailing from here.
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Registered User
Joined: 12/8/2004
Posts: 11
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Thanks jim penn for pointing this stock out. I followed my advice and bought on the breakout. Looks like it's heading for $11. Nice 13% profit in a week.
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Gold Customer
Joined: 12/2/2004
Posts: 28
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I sure hope you had a stop in place!
I guess TSV failing to reach a new high along with price on the 13th was a warning sign, and the drop in price along with TSV and MS on the 14th, the day before earnings reported, was another.
It's amazing how quickly things can turn against you.
As Mr Worden says, the market owes you nothing.
LOL
Jim
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Registered User
Joined: 10/7/2004
Posts: 2,181
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Don't know if this will help in the future, but if you go back and look at that stock with 13 and 20 day bollinger bands in place, you'll see each day's range did not have support for the climb. I've noticed that climbing stocks do better if they can "get up on top" of the 13 or 20 day upper band. In a weak market, if the stock gets too far away from the 20 day upper band, I get nervous.
Doesn't always work but, then, what does?
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Registered User
Joined: 12/8/2004
Posts: 11
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I got out with a small profit. The reversal on the 14th made me nervous. I was out on the 15th at a little over 10. It was a combination of the weakness in the overall market and the lack of follow through that made me drop the stock. I would still argue that it was a good buy. It broke out on high volume. Moneystream was soaring, though TSV was not as good. The setup was good, but s**t happens.
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