CTIX Daily Chart
As noted on yesterday's chart, VIP1999 pointed out how closely the 5 day moving average has tracked the CTIX share price. I further observed that Most days have a body with the 5MA somewhere inside, and the prior two rallies had only one or two days outside before touching and then having a body with the 5MA inside. Perhaps this pattern will hold? and yes, the pattern held with today's candle having a body with the 5MA inside.
So clearly we've hit my first retracement target, which could contain the decline, or the red diagonal trend-line could be the one. If either of those are the case, CTIX remains in a parabolic rally.
Alternatively, should we enter a low volume quiet period, a lower target would be the support at $1.18, which would be a 100% retracement of this W7 bar as eventually happened with the first one. Only 50% is expected as was the case for 11 days at the first W7 bar.
Next below that is support at $1.11 and then the long term diagonal green trend-line.
However, CTIX is behaving very strongly, and a PR is possible tomorrow confirming starting of the second cohort at double the dose, and possibly other good things.
I had speculated that the second cohort part may already be baked into the CTIX share price, but on reflection, that may not prove the case as it assumes everyone is following closely the progress and would know this is on schedule.
Not good to assume the wider market knows all the same facts the close followers of CTIX on our board do. In fact we have many new eyes looking at CTIX, likely many fence sitters, and they may be influenced. Of course anything even more positive and we should see Wave 3 up with projections starting from the low at $1.36! Yikes!
Also curious is the high volume today, possibly just delayed profit taking by traders.
On balance, my personal call was to go ahead and buy more shares today at the closing price of $1.41. (Yes it was possible to get filled at the Bid when the Ask was $1.44/$1.43 and my buys were reported as sells, lol) This tells me the MMs are expecting more weakness, and while trying to trap buyers a bit higher, were still willing to sell at their bid. In other words they thought the price should be a couple pennies lower.
But MMs look at patterns, not fundamentals. The coming days will determine who got the best of this.
My call is based upon seeing the opportunity cost of missing an up-side rally as bigger than the value of getting cheaper shares. Your results may vary.
One final note, today's bar is an 'inside bar', the high and low being contained by the previous day. Thus we have a two day, coiling Bull Pennant right at Key Resistance at $1.50. Another bullish indicator if it continues.
(Click chart for full sized version)
