CPST - Sector: Capital Goods --- Industry: Misc. Capital Goods

[Terliso]

CPST Chart #3:

[bmarc4211]

I think you might be on the something here.  Nice bounce off the 13 day MA @ 4.08.  Another great find Terlisa. 

[Leaira]

I hope it starts to move up soon.  I bought it last Monday at 4.10, and it went up for a while, then came back down on Friday cuz of something to do with executives or something.  But it does look like it's at support with the moving averages.

Leaira

[Melf Elf]

CPST had a first negative reaction on the resistance level ($4.50),

Frederick,

Yes, the April 19 high of 4.47 came within three cents of the 4.50 resistance level, and there was a non-confirmation in the 13/21 RSIs, suggesting weakness on that push higher. The 13RSI since has crossed below the 21RSI, also suggesting weakness. 

Volume on the rally to 4.47 was less than it was on the Symmetrical Triangle breakout and on the April 10 "flagpole."

Longer-term, the highs of 4.50 and 4.47 set up a flat top for a larger Bullish Ascending Triangle, but short-term, CPST looks vulnerable to a selloff to the March 24 gap at 3.36-3.42, and  to the 200DMA.

A print today of 4.02 is a technical break of the Bear Flag.  A print of 3.98 would be "a lower low," below the Bear Flag.

For those not familiar with Bear Flags, after a rally (which is the "flagpole"), they make "higher highs," and "higher lows," generally on technical non-confirmations, then they break down below the bottom of the flag, and make a "lower low."

In this case, a print of 3.98 would be a "lower low," below Monday's low of 3.99, and CPST would be vulneralble to a further selloff if trader's see that get printed.  The break of the Bear Flag would put Target: 3.42 IN PLAY.  That doesn't mean that we'll get there, but that's where the March 24 gap is, and its also close to where the 200DMA is.

In addition to the technical weakness in the 13/21RSIs, the MACD crossed below its signal line at yesterday's close. That also suggests weakness here.  I'll post both of those charts next.

[Melf Elf]

13/21 RSIs

[Melf Elf]

MACD

[Melf Elf]

A print of 4.02 today is a technical break of the Bear Flag.  A print of 3.98 is a "lower low," than Monday's 3.99.

[Melf Elf]

13/21 RSIs

[Melf Elf]

MACD

[cache00]

Seems like the stock will probably re-test resistance this week. Breaking through $4.50 will result in a chain reaction (short squeeze) that will take us all the way to $5 and higher. Go CPST!

[Ramsburg]

Thanks Melf, interesting analysis (applaud).

CPST had another positive reaction near the support level. We'll maintain our trading plan for now:
Hold CPST with a stop @ $3.80

Best regards,

[Melf Elf]

A print today of 4.02 is a technical break of the Bear Flag. 

Frederick,

The bottom of the Bear Flag for today, April 28, is 4.055, so the early print of 4.05 is a techinical break below the Bear Flag.  Target: 3.45 is IN PLAY.

A print of 3.98 would be "a lower low," below the Bear Flag.

The low so far is 3.99, and CPST has gone back up to re-test the break of the Bear Flag, at 4.055.

CPST currently is BID 4.05...ASK 4.06.

This looks weak.  It needs to get back above the broken Bear Flag.

[Melf Elf]

The Hourly Chart looks more like a H&S Top.  That also got broken to the downside this morning.

CPST still is BID 4.05...ASK 4.06, right at the point of the breakdown, below 4.055. 

This morning's 3.99 low is identical to Monday's low of 3.99, so its "possible" support, but again, with these pattern breaks, CPST looks weak, short-term.

Above 4.055, it's okay.

[Leaira]

I just got stopped out of this one at 3.82 for a 6.8% loss.

Leaira

[cache00]

This is why CPST went down yesterday, I expect a rebound on Monday; however, the damage is done.

A fake PR from Reuters went out on Friday afternoon  . From CPST website:

"Reuters Acknowledges Posting an Erroneous Message about Capstone on Their Website"

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=cpst&script=410&layout=7&item_id=849563