BCON - Sector: Utilities --- Industry: Electric Utilities

[Melf Elf]

Here's the MACD postive divergence at the October 31 low of 1.70, and yesterday's tick
higher in the MACD from just above its signal line (sorry, the latter is difficult to discern from this chart).  That's often a nice signal.  A rally in the stock should send the MACD up through zero.


http://charts-d.quote.com:443/987073757410?User=demo&Pswd=demo&DataType=GIF&Symbol=NASDAQ:BCON&Interval=D&Ht=400&Wd=600&Display=2&Study=MACD&Param1=12&Param2=26&Param3=9&FontSize=9

[Melf Elf]

Bought BCON at 1.83.  Stop: below 1.70.  Risk: a loss of about 8%.

[bjc]

Some action here...

BCON is up .13 at 1.94, with volume and price picking up in the past 5 minutes or so. 

[setravis]

Good old BCON.....
Looks to be getting a bounce off the 200-dma
+10.49%......Volume @.....2,654,477

[Melf Elf]

BCON is capitalizing on the nice technical picture that we discussed before Friday's open.  It's up better than 10% today on almost 2X daily volume.  I'd like to see a close above the psychological 2.00 level.

BCON currently is BID 2.00...ASK 2.01.

http://charts-d.quote.com:443/987073757410?User=demo&Pswd=demo&DataType=GIF&Symbol=NASDAQ:BCON&Interval=60&Ht=400&Wd=600&Display=2&Study=MACD&Param1=12&Param2=26&Param3=9&FontSize=9

[usedcasting]

Hey Melf elf, you got $2.00 ++++++. Congrats and great info on this play.

uc.

[Lucas Scott]

Melf, I read your excellent analysis this weekend and bought today. Applause to you!

[lbotez]

BCON is doing a live demo with Media people tomorrow in California...

today closed at HOD, 2.07...

there probably will be a PR in the morning, or sometime tomorrow.

I expect this to pop tomorrow, to 2.25 - maybe 2.50.

Good for ride up.

Next PR should be when they ship the demo unit to New York State energy..  we have been told this will be before the end of the year (which is ending soon)...

this might pop it up to $3 (depending on how far down it drops after tomorrow's news).

[bjc]

Melf Elf-

Have you set up any kind of a price target?  If we get thru the 50 ma (2.19) and break the 2.35 Nov. 16 high, I feel like it could be a pretty fun few days.

[Melf Elf]

Melf Elf-

Have you set up any kind of a price target?  If we get thru the 50 ma (2.19) and break the 2.35 Nov. 16 high, I feel like it could be a pretty fun few days.

bjc,

If BCON can take out the middle of the "W," that would put 2.95 IN PLAY.  I use the more conservative of the two legs of the "W" to derive the target.  The left leg is 1.70.  The right leg is 1.7498 (1.75), so I use the right leg:

Math:

2.35 - 1.75 = 0.60 points, added to a breakout above 2.35 = 2.95 IN PLAY.

If we  use the left leg (1.70), that would be a target of 3.00 IN PLAY.

Up in that same price area, we've got:

1. Prior low resistance at 2.90

2. The top of the Ichimoku Kinko Hyo Kumo (Cloud), currently at 3.00 (see next post).

3. The .382 Fibonacci Retracement of the decline from 5.35 to 1.70, at 3.09.

So, it looks like if BCON can take out 2.35, we ought to get to that 2.90-3.09 area.

usedcasting and Luke Q. - Hope we all make some $$$ on this one. 

[Melf Elf]

We're headed directly into the Kumo (Cloud), which represents overhead resistance.  We've got a nice five week base, though, from which to attack it.  The reward, if we can get through the Kumo (Cloud), is that 3.00 area.

[bjc]

Seems like people are waiting to hear how the presentation went.  According to someone on the Yahoo! MBs, a San Francisco news station will be reporting the story at 12:00 PST, or 3 Eastern.

[setravis]

Heating up in the pre-market....
Pre-Market (RT-ECN): 2.14  0.18 (+9.18%)

[rickjust]

hi melf elf,
could you tell me what the kumo cloud is based on ? is it moving averages?
thanks
max

[Melf Elf]

hi melf elf,
could you tell me what the kumo cloud is based on ? is it moving averages?
thanks
max

max,

Here's the explanation from Metastock.  I use the suggested time periods (see italics below), to reflect the change in trading days.  Metastock automatically does the calculations for you, once you select on the parameters page what time periods you wish to use :

"The Ichimoku Kinko Hyo was developed by Goichi Hosoda, a Japanese newspaper writer, writing under the pen name "Ichimoku Sanjin."  He developed this charting technique before World War II, and offered it to the public when he published his book in 1969. 

Ichimoku translates as "a glance" or "one look."  Kinko Hyo translates as "the table of equilibrium" or "balance table."  Hence a chart displaying this indicator provides a broad look at the prices in a single view.  You should be able to look at the chart and know at a glance whether to buy or sell.

Three key time periods are used to calculate the five individual plots used in the indicator.  These times periods are based on the trading conditions at the time the indicator was created: Japan in the 1930's.  At the time, a trading week was six days instead of the five days we are used to today. Some traders may wish to alter the time periods to reflect the change in trading days.

9 periods = one and a half weeks (now 7.5 periods. use 7 or 8
26 periods = one month (now 22 periods)
52 periods = two months (now 44 periods)

The Ichimoku Kinko Hyo indicator is composed of the following five plots, in addition to the closing prices.

Tenkan-sen. (Dark Green Line*) The standard line. This plot provides signals when paired with the Kijun-sen. The default periods for this plot is 9. The calculation for this plot is (Highest High + Lowest Low)/2. The highest high is the highest high over the last specified number of time periods. By default, this is the highest high of the last 9 periods.  The other highest highs and lowest lows are calculated the same way.

Kijun-sen. (Dark Red Line*) The turning line.  This plot provides signals when paired with the Tenkan-sen.  The default periods for this plot is 26. The calculation for this plot is also (Highest High + Lowest Low)/2. However, the values are taken from a 26 periods time frame instead of a 9 periods time frame.

Senkou Span A. (Vertical Lines*)  The first span. This plot creates the Kumo (cloud) when paired with Senkou Span B.   The default periods for this plot is 52.  The calculation for this plot is (Tenkan-sen + Kijun-sen)/2.

Senkou Span B. (Vertical Lines*) The second span.  This plot creates the Kumo (cloud) when paired with Senkou Span A.  The default periods for this plot is 52.  The calculation for this plot is (Highest High + Lowest Low)/2. 

Chikou Span. (I don't use it.  I didn't understand it, so I made it "invisible" on the Parameters Page*)  The delayed line.  This plot is simply the close plotted the desired number of time periods in the past.  The default periods for this plot is 26.  In this case, today's close would be plotted 26 days ago. 

See Plotting an Indicator for more information on plotting indicators.  See Ichimoku Kinko Hyo  for more information on the Ichimoku Kinko Hyo parameters.

* My comments, not Metastock's explanation.

It's interesting how the Ichimoku Kinko Hyo chart comes into play.  Yesterday, for example, the bottom of the Kumo (Cloud) was 2.085.  BCON made a high of 2.09 near the open, then sold off.  The Kumo (Cloud) is overhead, so it's resistance here. 

This morning's high is 2.11 near the open, and BCON has sold off again.  BCON needs to "plow through" that Kumo (Cloud), so to speak.