CTIX Daily Chart In rally wave two we note

CTIX Daily Chart

In rally wave two we note some key points:

1. CTIX again closes above $1 for 3 days, this resistance line is changing back to support. But note as it was a long-term multi-year resistance line for CTIX, we have seen this flip-flop this the 3rd time.

What looks a bit stronger this time is CTIX did not come back to hug the $1 line right away, but we really need several days closing above the next resistance line @ $1.11 for confirmation.

2. The green diagonal trend-line which coincides with the 50 day Moving Average remains intact. This has the look of an orderly price increase, and is a popular technical buy area in an up-trend.

3. The pattern of increased volume on rallies and lower volume on retracements remains active, consistent with an uptrend.

4. Wave 2 looks stunted, coiling, and has the appearance of an uncompleted wave up.

5. Selling pressure appears to have eased, compare the selling volume of the up-fractal with the red arrow, and Friday's selling which touched the green trend-line, but closed above $1

6. All of this sideways coiling remains inside of the two day break-out above the prior key resistance @ .77 to the new key resistance of $1.18 , coils more often than not resolve in the direction of the dominant trend, which is up for CTIX.

7. We have a good PR news event, and much greater readership. News and investor sentiment are the primary movers of stocks, TA just watches their behaviour and notes good action points such as support and resistance. But many traders use charts and CTIX is a bullish continuation chart.