CTIX Daily Chart The PR rally appears to h
Post# of 72440
CTIX Daily Chart
The PR rally appears to have slowed down, with yesterday making a Doji (good call vip1999) and today testing support @ $1.18 and closing just below.
We see some typical CTIX rally price action which I've highlighted with blue ovals and red arrows.
1. A break above long-term resistance at $1, followed by a red bar and a drift back down to $1 which served as support for 9 days. Followed by a drift down to the green diagonal trend-line.
2. A break above $1 which had flipped back to resistance, followed by a red bar and a drift down to $1 , and then followed once again by a drift down to the green diagonal trend-line.
3. A break above resistance at both 1.11 & 1.18 resistance lines, followed by a doji, and then a test of resistance as possible support. I've placed a ? at 'up-fractal', as this is not yet confirmed. Notice the high was within 2 cents of my 100% Wave 2 target $1.25 (2 or 3 cents either way is as close as one expects.)
Notice in all this price action how strong the green diagonal trend-line has been as a buy area. No single day has closed below this line since September. A rally pattern of higher lows. This trend-line also coincides with the 50 Day MA, a common signal for Technical traders.
Note I've added a yellow 9 day MA. We see each of the two rallies of 2 or three green bars which leaves the yellow 9 day MA leaving a space, and with a following red bar, drift down to test the green diagonal trend line on lower volume.
Very orderly price action for CTIX to date. This #3 has the look of a completed Wave 2 rally, which if that is the case can be expected to drift down to the green trend line. (But not yet confirmed)
Notice that today the green trend line crosses $1. So any test of the line should be above $1 in coming days, and the first key test would be support at $1.11. The yellow 9 day MA will meet $1.11 soon if there is a decline, so it is possible this will serve as the next low instead of the green trend-line. This would be consistent with the gaining strength of CTIX, and the break-out condition. Time will tell. Patterns are suggestive, not destiny.
Keep in mind for the price action to remain orderly, we need a period of low volume without a PR or significant media/blog/report exposure. CTIX is a low volume news/rumour driven OTC stock, so any such event blows orderly price action out the door.
TA is meant as commentary, and an aid to choosing logical buy and sell points, not as prediction.