3SOF

CPST is testing its descending resistance line, after a really big correction in the past few months
Volume is still missing to consolidate this possible move, but a close above $2 with volume above average may lead CPST to higher ground.

Earnings will be next Wednesday, and this could be a good catalyst for a short term move. A potential rebound target would be the ema-50 right now at $2.40

Regards,

They make microturbines, and were a big favorite stock of Jim Cramer in the past for a speculative play.  I believe they fell recently from $2.2 to below $2 after their CEO resigned.  A lot of what drove the original speculative pricing was hope that WalMart would place a big order for their microturbines. 

i got in the indicators are bullish....(1.95)

Still above the breakout level... CPST is holding up above $2.00...

We should keep this one on the watch list.

i have to type with one finger due to a bout with carpal tunnel.  sorry. 

in general, avoid stocks like cpst.  the "break above' the descending line is not a "breakout" of a bottoming pattern.  it only is a "break above."

see the "break above" the down trendline in astm?  not a breakout.  there is not base-building.  just a little pattern that has to go up against all that resistance above 1.90.

what stands out more to you, that "break above" the down trendline, or the fact that the stock put in a big top, breaking below 1.90.

i'll show you what happened next, and how this chart is similar to cpst.

astm fell more than 50% from the "breakout" high of 2.27, to 1.10.  ugh.  it wasn't a breakout.  just a "break above."   

cpst chart nex.

what strikes you as the most dominant feature on this chart?

1. it broke above the black down trendline?

2. it broke below 2 levels of horizonal support (red lines), and now all of this is resistance going back to september?

a. 2.75-2.71

b. 2.25-2.23

see what i mean?  stocks can do anything, but in general, this one and others like it still are bearish looking.  i suggest don't bottom fish.  avoid them.

just suggesting.

Quote from: Melf Elf on August 07, 2006, 07:27:43 PM
what strikes you as the most dominant feature on this chart?

1. it broke above the black down trendline?

2. it broke below 2 levels of horizonal support (red lines), and now all of this is resistance going back to september?

a. 2.75-2.71

b. 2.25-2.23

Yesterday, CPST broke another level of support: 1.74 - 1.75, continuing its Bearish trend.  UGH.

Quote
see what i mean?  stocks can do anything, but in general, this one and others like it still are bearish looking.  i suggest don't bottom fish.  avoid them.

just suggesting.

CPST currently is down another 8% today, to 1.52, after yesterday's break of support.  UGH.