Morning Chart So far $1.36 has contained th

Morning Chart

So far $1.36 has contained the expected selling action from the $1.50 resistance battle zone.

The red diagonal trend line remains intact, it would intersect about $1.26 today, and that number climbs each day.

While the previous W7 bar gave up 100%+ of its gain after 23 trading days before the rally resumed, I don't expect that with this W7 bar as CTIX has new buyers, improved fundamentals and an ongoing clinical study. So I set a target of about 50% of the bar to contain the selling.

But anything is possible and as $1.18 is the proximal support, a test is always possible as is a test of support at $1.11 and the green diagonal trend-line.

But for now I favour the new red parabolic trend line holding and launching a 3rd wave up from around there. Notice at the first W7 on 9/24/12 the pullback held around 50% of the W7 bar for about 13 days. I think CTIX is stronger now with more catalysts.

We'll see as today and the coming days unfold.