3SOF

i set a market order for the opening bell and got in @ $2.02. EGHT closed at 2.10 today. I think this is the beginning of its next rally. If we have a close above $2.50. $$$$ to come our way!  . Best of luck if anyone is following this pick as well.

Trading Plan: Hold as long as it closes above the ascending trend line which is currently at $1.92.

-fousc

Updated chart:

where do u see resistance?

Our first barrior to break is at $2.30. If it price action closes above $2.30 on this next rally i believe it will break our "Key resistence area"(the horizontal line of the ascending triangle) at $2.50 soon after. From there our target is $3.86.

Thanks for the question rocket i should have stated resistence areas in the first place.(applauds)

-fousc

Nice work on EGHT, fousc.  Applaud.

Last Wednesday, the trendline off the July 7 low was validated.   The hit ($1.85) was nearly exact, within $0.005.  The smaller Ascending Triangle targets $3.53 on a breakout above $2.50, which is 74.7% higher from Friday's close of $2.03 if it makes.

The top of the Ascending Triangle, as fousc mentioned, is 2.50.  We can see from this chart why 2.49-2.50 has been recent resistance.  That was the neckline of a six month H&S top.

EGHT currently is into its sixth month of base building off its late April, 2005 low, which is constructively bullish since it has to go up against six months worth of resistance in that H&S top.  "The bigger the base, the better the breakout."

thanks Melf,

Price action lookin good so far today up 5% currently.

-fousc

fousc,

Thanks for the heads upon this one, excellent pick (applaud), and I love the chart too

Just looking for my entry point, aiming for 2.10 - at least with 10% upside before breakout.

I am definitely in this one with you guys!

the Scotsman

Quote from: fousc on October 03, 2005, 10:10:15 AM

Price action lookin good so far today up 5% currently.

I'm in at 2.06, fousc. 

At 9:45, on the 5 minute chart, EGHT ran up from 2.05 to 2.27 on almost 400,000 shares for that 5 minute bar, so it looks like there's some buying interest.

I'm also in - got a partial fill at 2.10 - maybe I'll get the rest today

But I think this one is on the move to test the top of the triangle again

Nice analysis Melf Elf, glad you're in with us on this one too

Some revenue history from a form 10K/A filed today.

http://biz.yahoo.com/e/051003/eght10-k_a.html

Looks like US revenues are increasing substantially.  Need to have a look at this in more detail.

in @ 2.16$

good luck to all longs, thanks for analysis Melf ELf

My initial target of 3.86 is no longer valid because my triangle was drawn premature to the price action. The new smaller triangle that melf pointed out is are key target of 3.53 now.

Today we some solid volume showed up again though were still below the first resistence level of 2.30. Though the gap up on volume today should grab a little bit of attention from other traders. Backed by the financial growth of this company i don't think our target of 3.53 is too far from becoming reality.

-fousc

updated chart:

Nice ....

Yup we are moving but it is the ascending triangle breakout we are focsuing on - a much longer term, and so more reliable pattern, and the break of the short term downward trend is just a part of it.

fousc, you're right, I think it is the lower resistance line that we nearly touched today that represents the breakout, and where we should calculate our technical target from, but we gotta get through the upper resistance line too    Also, I'm sure you noticed the volume today, really solid. I think things may be picking up to break out in the next couple of days, the end of the triangle is narrrowing...

Quote from: ScottishTrader on October 04, 2005, 03:34:26 AM
fousc, you're right, I think it is the lower resistance line that we nearly touched today that represents the breakout, and where we should calculate our technical target from, but we gotta get through the upper resistance line too

Hey scottish,
I actually have the profit target projected from the resistence line at $2.50 for the target of 3.53. I think that is our main goal to break for this to be a valid triangle pattern. I did't notice this in my first analysis but 2.50 is the neckline low of the the the H & S pattern that formed in late 04' - 05' that was pointed out by Melf Elf(applauds) . price action tested 2.50 again twice in the formation of this new triangle. So a close above the resistence at 2.30 will certainly help us get past 2.50. But i think 2.50 is the key resistence area for us to break here. We may close above the 2.30 only to retest resistence at 2.50 and then retrace back to the ascending trendline. We'll just have to see what the mob has to say about that.

If we continue to have volume like we did today, we won't have a problem breaking 2.50 by friday

-regards,

-fousc