GCR - 30-11-2006

Here's one of my fave setups. I love to see stocks that have fallen from great heights flatten out and channel sideways for a while - as aposed to those that just bounce. The fact that they've flattened out and channeled sideways tells us that an agreement in price has been reached - buyers are happy to buy, and sellers are not happy to sell any lower. Once the sellers have dried up, the buyers will regain control. I sign of this happening is the large footpints on the bottom of the chart as it moves out of its channel, called VOLUME. Also, take note of the bullish divergence on the oscillators, remembering that oscillators are momentum indicators. if this doesnt turn out tobe a flase break, then we could see some nice quick moves out of this one. Even if it does turn out to be a false break this time, i think its only a matter of time till it does break out. The volume makes it hard to believe now is not the time though - I'm in !


Disclaimer: The above mentioned information is my opinion only, and NOT to be taken as advice as i am NOT a licensed advisor. Caveat emptor.


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