RE:Technically speakingJanuary 8th, $2.13.
Just a reminder/refresher how I arrived at my own personal target.
I could be absolutely wrong of course, but I don't think so, and this is low-balling it. tamaracktop wrote: From a technical analyst's perspective, the chart shows a perfect short-term inverted head-and shoulders formation, with the $2.09 close on December 1st and the $2.10 close on December 31st forming the neckline.
You can see the shoulders at $1.73 on December 9th and at $1.76 on December 23rd.
The "head" is the $1.68 low-close on December 19th.
Conventional technical analysis suggests that a target can be established by measuring the distance from the neckline to the head and then adding that number to the price where the stock first breaks out above the neckline.
In this case, the distance from the neckline is .42. ( $2.10 - $1.68 )
The stock broke out on Friday very convincingly at $2.13 on 193% of its trailing 50-day average volume.
Technical analysis in its purest form indicates a short-term target of $2.55. ( $2.13 + $.42 )
Many people disregard technical analysis. They write it off as hocus-pocus.
I admit that when I first became a stockbroker, I was one of those people.
I thought to myself " What are all theses idiots doing running around with charts?"
The truth is that I've since come to respect the practice, and the truth is that there are so many technicians out there that, to some degree, technical analysis can become somewhat of a
self-fulfilling prophecy.