3SOF

Interesting reading about CPST posted on Thursday by Business Week:
http://yahoo.businessweek.com/investor/content/apr2006/pi20060413_693178.htm

Quote
Another small company, Capstone has sold more than 3,500 of the refrigerator-sized turbines in total. It isn't profitable but pulled in revenues of $16.55 million for the nine months ended Dec. 31, up about 43% year-over-year. A February report from First Albany Capital, which makes a market in Capstone, finds that the company has "reached an inflection point" that will boost orders. The firm rates the stock a buy, as Capstone continues to hum.

The chart looks great, showing strength after the recent breakout. Some public exposure like this report on BW, may increase the buying pressure needed for a breakout of the $4.50 resistance.

I believe we have strong potential here, so let's keep the plan for now and wait for some price developments:
Hold CPST with a stop @ $3.60

Best regards !

I like this play for some profits Rams.
I'm still holding this one from October.
I am located here with this one.
Good luck with the trade......

http://www.3stocksonfire.org/trading/index.php?topic=686.135

Frederick,

I had a difficult time deciding how to draw the trendlines. 

I like a high, then a low, then a high, then a low (or the reverse), so I went with the Symmetrical Triangle, as drawn below, but yours is perfectly valid.  Mine results in more conservative upside targets.

Regardless of how the pattern is drawn, I like to see if either trendline (or both) gets validated.  On both of our charts, the pattern breakout got re-tested on April 4, and it held within one penny.  I like that.

Target #1: 4.50 IN PLAY is a return to the top of the pattern.  Sometimes, the stock "double tops" there, and that's all for the upside.  CPST looks stronger than that.

Target #2: 5.01 IN PLAY is the distance from Point #2 to the trendline, added to the breakout.

Target #3: 5.32 IN PLAY is the distance from Point #1 to Point #2, added to the breakout.

Applauds to you and to setravis, who has been working on this one for quite awhile.  Good luck to all!

I got my order filled at 4.10 this afternoon, right before the whole market started to tank.  I hope this turns out to be a good entry point.  I tried to get this at 3.96 on Thursday, and the low was 3.99.  I guess I should have tried for 3.96 again today cuz that was the low.   

Leaira

Quote from: setravis on April 17, 2006, 04:09:43 AM
I like this play for some profits Rams.
I'm still holding this one from October.
I am located here with this one.
Good luck with the trade......

http://www.3stocksonfire.org/trading/index.php?topic=686.135

Thanks Setravis ! Since October ? wow nice profit you got there Thanks for the link and contributions about CPST ! (applaud)

Quote from: Melf Elf on April 17, 2006, 05:45:06 AM
Frederick,

I had a difficult time deciding how to draw the trendlines. 

I like a high, then a low, then a high, then a low (or the reverse), so I went with the Symmetrical Triangle, as drawn below, but yours is perfectly valid.  Mine results in more conservative upside targets.

Regardless of how the pattern is drawn, I like to see if either trendline (or both) gets validated.  On both of our charts, the pattern breakout got re-tested on April 4, and it held within one penny.  I like that.

Target #1: 4.50 IN PLAY is a return to the top of the pattern.  Sometimes, the stock "double tops" there, and that's all for the upside.  CPST looks stronger than that.

Target #2: 5.01 IN PLAY is the distance from Point #2 to the trendline, added to the breakout.

Target #3: 5.32 IN PLAY is the distance from Point #1 to Point #2, added to the breakout.

Applauds to you and to setravis, who has been working on this one for quite awhile.  Good luck to all!

Hi Melf !

Thanks a lot for your chart and Analysis (applaud)
I think the main difference between our analyses here resides on me using the semi-log scale on CPST charts (not sure), also my price projection uses the maximum amplitude between the descending resistance and the ascending support (this one I have it more extended than you, so that's probably the reason).

Quote from: Leaira on April 17, 2006, 04:06:48 PM
I got my order filled at 4.10 this afternoon, right before the whole market started to tank.  I hope this turns out to be a good entry point.  I tried to get this at 3.96 on Thursday, and the low was 3.99.  I guess I should have tried for 3.96 again today cuz that was the low.   

Leaira

Hi Learia !

I wish you luck, you already have a better price than 3SOF

Now the update:

Not a good session for CPST, following the market deep, and closing negative. Our chart pattern remains intact, so we'll face today's session as a normal behaviour.

We are just updating our stop level a little higher, since it's related with an ascending line, so the plan is:
Hold CPST with a stop @ $3.70

Best regards !



.

Quote from: Ramsburg on April 18, 2006, 01:08:07 AM
Not a good session for CPST, following the market deep, and closing negative. Our chart pattern remains intact, so we'll face today's session as a normal behaviour.

Hold CPST with a stop @ $3.70

Frederick,


Yesterday's volume on the Bearish Engulfing pattern was 4.4 million shares vs. Thursday's 3.4 million shares, so that does suggest some more downside, unless this is a pennant (dotted green line), and CPST can take out Thursday's and yesterday's highs of 4.24.

Your 3.70 is interesting.  I came up with it two different ways.

1. We also could be in a Bull Flag here (solid green lines).  The downward slope of the highs is 0.032 per day, so creating a parallel trendline for the bottom of the flag, we get 3.732 for today, April 18, and 3.70 for tomorrow, April 19.

2. If this is an A-B-C correction, and if Leg C were to be exactly the same as Leg A:

The high of Leg A was 4.40 on April 10; the low was 3.86 on April 12, or 0.54 points.

The high of Leg B yesterday and Thursday was 4.24 - 0.54 points = a low of 3.70 for Leg C, if that's what we've got, and if Leg C = Leg A exactly.

If pigs could fly, too! 

Just something to watch for.

Glad to see this stock is up nicely today (with the rest of the market).  I love the double-bottom it formed yesterday at 3.96 in the last hour of trading, then closed above $4.00!  I already set my stop to 3.70 when I bought it.

Leaira

Quote from: Melf Elf on April 18, 2006, 03:40:37 AM
Yesterday's volume on the Bearish Engulfing pattern was 4.4 million shares vs. Thursday's 3.4 million shares, so that does suggest some more downside, unless this is a pennant (dotted green line), and CPST can take out Thursday's and yesterday's highs of 4.24.

CPST printed 4.25 and volume already is 3 million.  That looks a lot better.    

Looking at this 1 year chart,has broken out of this
Symmetrical Triangle (continuation) Pattern.
Resistance looming @ $4.50

Volume: 7,066,838
Avg Vol (3m): 3,431,890

Technicals
Last Price Quote is:
8.98%above 13-day EMA
18.83%above 50-day EMA
RS Rating: 82 

Fundamentals
Key Data:
Market Cap (M): $425.33 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: 06/28/2006
Last Analyst Rating: Buy

A nice session for CPST showing some strength, the stock made a nice move with a significant volume increase. We may have now the perfect conditions for the breakout of the $4.50 level.

The plan will remain:
Hold CPST with a stop @ $3.70

Ps: thanks Melf, your charts and analysis are always welcome (applaud)

Up is good.... I will take a slow/solid run anytime. 
Let's punch out the resistance ! 

Volume: 6,437,138
Avg Vol (3m): 3,440,860

Technicals
Last Price Quote is:
12.19%above 13-day EMA
22.99%above 50-day EMA
RS Rating: 88 

Fundamentals
Key Data:
Market Cap (M): $425.33 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: 06/28/2006
Last Analyst Rating: Buy

CPST had another interesting session, trading just a few ticks below the resistance at $4.50.
Today we'll probably have the first test on the resistance level, and we expect some price action...

For now we are just upgrading our stop level and continue to hold CPST, so the plan is:
Hold CPST with a stop @ $3.80

Best regards,

Let's make some $$$ Rams,
I'm with you.....Read me here.....   
http://www.3stocksonfire.org/trading/index.php?topic=686.135
Applaud the Plan.....

CPST had a first negative reaction on the resistance level ($4.50), this issue is completely normal, and it doesn't compromises our trading plan.

Our expectation is a breakout of the $4.50 barrier soon, followed by a sharp move above $5. The risk is to get stopped at $3.80, the reward is to sell this position above $5, we enjoy this risk / reward ratio and we have no reasons to discredit this position so far.

So the plan will be the same:
Hold CPST with a stop @ $3.80

Best regards,

I bought CPST just now... I've been waiting the pullback from the trend that started 5 weeks ago, I think there is more upside potential for this baby of course it's only my opinion but i'll leave charts for you to judge....

Goodluck pips!!!