http://stockcharts.com/charts/gallery.ht...

http://finance.yahoo.com/q/ta?s=HSC&t=3m...

The first chart of the top link shows the formation of a nice triangle. Five of six times, classic triangles follow the immediately preceding trend when they break out. The immediately preceding trend is up.

The second chart of the top link shows that HSC underwent a classic double bottom, i.e., the second down leg of the "W" was slightly lower than the first. This is typically a very bullish chart formation.

The Yahoo chart isn't as clear -- a one month view doesn't exist -- but it complements the first and shows the lackluster volume as the triangle tails out.

I think what this chart is telling us is that there is a very good possibility -- in this still-iffy market environment subject to the caveat that the overall market not tank -- that HSC's next move at the end of the tail will be sharply upward. The breakout will probably come in the next ten trading sessions. There is a 1/6 chance it will be a breakout to the down side, mitigated somewhat by the bullish double bottom preceding it.

I am now comfortable going long in a bigger way rather than sitting on the sidelines simply holding what I have. I'd think the 30 and 35 calls might be good. 40's might be a stretch. My call option approach to other stocks that have acted well lately seem not to have worked out very well in practice, however encouraging they appeared to be on paper, while the actual shares seemed to yield a much better result.

Bear in mind that time showed I called the market bottom wrongly last fall. ::wry smile::

Adamantane