COV chart analysisAfter some extended basing around 50 to 60 cents, the stock moved aggressively towards the $2.70 to 3.40 range. It has been consolidating this move for about six months now, trading in a tight range of $2.70 to $3.00 since this past April, aside from the dip in August (the general market sell-off). This is normal trading behavior.
There has been resistance at the $3.00 range, where the stock attempts to trade through but has "bumped its head" a few times now. When the stock breaks through the $3.00 range ON GOOD VOLUME, the next massive up leg will occur. You can project a move up to the $5.00 to $5.50 range (measured by the previous run and consolidation) as the next stop before consolidation again.
Other notables:
-the 50 day M.A. is at $2.72 and 200 day at $2.10. The stock did not cross below the 200 day M.A. even on the market melt-down; a great bull sign.
- the RSI index has accelerated in the past few weeks and the MACD has just turned positive.
all great BULL signs.
I am not sure of when the current consolidation will end, but it should be sometime soon as some 16 million shares have traded in this consolidating range since April 07'. Sooner or later the sellers will disappear. Be ready for the pop.