Sunday, January 8, 2012

Stock of the Week: CHRS

So we're still looking at CHRS.  I recommend you go to and pull up a chart on CHRS.  Add some technical indicators such as Williams %R (make sure to edit the span from 14 to 3).  You can also add the EMA and SMA.  EMA should be 30 and SMA should be 10.  Make sure you change the chart pattern to candlestick.  On you can switch between daily and minutes.  If you are looking at daily, you will notice that the stock has now dipped into the TAZ as defined by Craig on his Swing Trade site.  The Williams %R indicator has dropped to below -80 and it has sold off for at least two days.

Looking at the Elliott Wave and Craigs 4 wave system, we see that the chart must be getting ready to head back up.

I apologize for not writing more in the past week.  This week I have been studying horary charts and professionally giving delineations so I've been consumed with astrology.  Notice that I did run a chart and posted it as my last blog post.  My prediction was that the CHRS chart would be ripe to invest in about 5 days.  I'm going to take the plunge.  My fears with this chart are that the volume is still relatively low, but Craig doesn't put a lot of stock in volume unless there is a major spike in both volume and price. 

There are no earnings reports coming out for this company right now so all of the basic indications that this is a worthwhile chart are there, and manifested five days after the horary question was asked.

So here we go: I take $500 and invest $490.  Right now the price quote is $4.69 per share.  I'm going to buy 104 shares.  That puts my total investment at $487.76 plus a $10 commission.  I need the stock to jump up about 25 cents in order to make a $6 profit after buy/sale commissions.  Pretty reasonable considering that we're hitting a former resistance as well as former support level.

Crossing my fingers, trusting my delineation and looking at the stock chart...

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