1. Check out this 2-yr candlestick with 65 wk, 130 wk and 195 wk moving averages. 65 weeks = more than one year, but it's a read off of the 65 day moving average which is approximately one quarter. Times 5, the 65 week is covers 5 quarters; 13 weeks = 1 quarter. It brings a "quarterly look" or by weeks a yearly look.

Bring up the chart and try drawing a straight line from any of the 4 weeks where we see the price bottomed at 50 cents and trace it straight to where the stock hit $2.00. Then trace a 2nd line from that point downward to where the price is today about $1.60. You should try to make sure the straight lines are drawn through the middle of the high/low prices, not above or below as in support & resistance lines. You may have heard of the line of best fit if you've ever done regression studies. Now look at those two lines. We clearly went 'straight' from 50 cents to $2.00, and then from $2.00 to $1.60. That looks like one of many normal charts where nothing is out of the ordinary to me. It's my expectation the next phase will see the stock continue the uptrend. Using these two lines, one could argue that these are two lines in a possible Elliot Wave move upwards. $2.00 area would be the (1) and $1.60+- would be (2). The one is the upmove, the two is the bottom of the retracement. Looking at the two lines, to me what we are seeing looks perfectly normal. Perfectly normal. The stock line went up by $1.50 to the $2.00 and retraced 1/3rd of that line move back down to $1.50/$1.60. What about the Elliot Wave #3? Well, the same investors that took it up from 50 cents are still around, and new investors are watching for the money to be shown, so if the company has another good quarter and more good news, we'll move up.

2. Check out the strengths and weaknesses people are looking at. It's not an exhaustive list. Just some biggies that either pump you up or deflate you depending which you look at. Ask yourself or your advisor about the weaknesses and when they'll disappear off of the radar screen. A lot of them will disappear after one year's filings are done at which time they won't be calculated in the twelve month trailing figures. The last twelve months, trailing basis, is one of the most important time periods in stock investing, which is why you see everywhere "ttm" in financial number crunching.

My Opinion: We're completing a macro- or super-Elliot Wave (coining a term) #2 point being formed. IF we get good quarterly news, if the financials look better, if we get some other news we heard is coming, then we are well-set to see the stock head toward the macro-EW #3. That step could be composed of multiple small steps up, just like the first 1 was. Macro-EW is composed of several Micro-Elliot Waves, then.


THE CHART:
http://bigcharts.marketwatch.com/charts/...

THE STRENGTHS & WEAKNESSES:
It may be perception. Bulls may be looking at the strengths, non-buyers, just holders or previous sellers may be looking at the weaknesses on the financials. Expectations of buyers versus concerns of non-buyers.