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Registered User
Joined: 6/24/2005
Posts: 38
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This post is essentially a learning exercise. I am still cutting my chart-reading teeth and would like some feedback on my analysis of ANTP.
I am looking at a daily chart of ANTP. It has been meeting resistance at about 15.5 since February and has been trading in a very tight band just above there for the last month or so, and volume has really dried up, implying consolidation.
I have drawn a trendline essentially connecting the December, June, and July highs, making descending triangle with the resistance line at 15.5. However, descending triangles are supposed to occur during downtrends, so I am a little confused by the pattern.
During the first part of the "triangle" pattern, the volume was higher in downtrends than in uptrends, while later in the pattern, the volume is supporting the uptrends. Also, OBV shows (I think) bullish divergence.
As I said, this is a learning exercise to get feedback on my analysis. In practice (at least at my level of experience) I would wait until one of the two trendlines is broken before establishing a position.
Any thoughts from more experienced technicians?
Thanks!
Mike
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Registered User
Joined: 10/7/2004
Posts: 2,126
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Well I am sure that you are aware of the break out today. Is Phazar clear enough?
Good luck!
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Registered User
Joined: 12/2/2004
Posts: 1,775
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You make several references to "resistance" at 15.5, when the correct term should be "support." Yes I know that you know what that 15.5 level signifies as far as how you wish to trade or study it, but just want to make sure you get the term right...doing so will prevent confusion/misunderstanding when you read and hear about support/resistance levels in the future from others. Note that if price ever closes (especially with volume) below 15.5, the terminology will reverse, with 15.5 then becoming resistance. Good luck.
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Registered User
Joined: 12/19/2004
Posts: 415
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What a roller coaster, makes me sick just looking at it. You must be nimble with this one.
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Registered User
Joined: 6/24/2005
Posts: 38
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Thanks to all for your replies.
fpetry, I mispoke re. resistance/support, I do know the difference (I'm new, but not that new  ). I certainly appreciate the correction nonetheless.
BB, "is Phazar clear enough?" - I wouldn't trust it until it breaks above my trendline connecting the December, June, and July highs, but I am a newbie, so what do I know?
Bk, yes, it does move around a bit. Makes for an interesting study.
Again, I appreciate the exchange of ideas.
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Registered User
Joined: 1/28/2005
Posts: 4
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Take some profit around $23.
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 Gold Customer
Joined: 1/16/2005
Posts: 10
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Considering that the stock was $1 three years ago, $3.50 just last year, and was over 50 early this year, you should be very wary of technical chart formations and the implications of high and low volume.
You were obvioously right about the implications of low volume during the recent basing. But, to me, the two-day high-volume jump from 15 to above 20 appears to be either/or manipulation or distribution.
Another important consideration is the market trend. Of course this itself is not easy to determine. Since the market trend has been negative IMHO for several weeks I would avoid going long anything.
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Registered User
Joined: 7/30/2005
Posts: 51
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To wild and lose for me, but good luck with it
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Gold Customer
Joined: 2/1/2005
Posts: 51
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You don't need technical analysis for this stock. Psychology of peoples actions in the market easily determine the trend of this stock. You can see high volume in both end of March and end of May, what you have is a overhead supply problem. Too many people have this stock from April to today, and all they want is to break even, or a small loss. This stock will stay in the $15 to $17 area, until people's expectations are lowered to 30-40% losses. In the meantime, anytime this stock goes up, the disgruntled investors will sell. Unfortunately since you have a relatively low short interest, you can't count on the stock going up due to purchasing to cover shorts.
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