Filed under:
* General
* CPNE
— SmallCapNetwork Editor @ 7:28 am
We’ve all been following Commerce Planet (OTCBB: CPNE) pretty closely over the last few weeks….some of us because we own it, some of us because we wish we owned it. While we’d all love to go back mid-January and scoop it up again at $2.00 (knowing it was on its way to more than $3.00), that ain’t gonna’ happen. However, we think we might be looking at the next best thing - a short-term pullback that may be a window of (entry) opportunity.
Two things caught our eye. First, the bearish gap…..the market hates ‘em, and they act like vacuums. So, today’s could have a ‘pulling up’ effect on the stock.
The second thing….a near-perfect 38.2% Fibonacci retracement from the recent peak at $3.30. We used $1.75 as the base. You could justify other base lines, but that’s the one that has the most meaning in our view.
You can already see a recovery effort was started as soon as the Fib line at $2.70 was - a good sign.
The chart is below. In the meantime, a couple of other key developments….
This morning, Commerce Planet hired not one, but two investment banking firms. On Monday, we learned that 4.8 million shares of unregistered stock were being sold to institutional investors…..at a price of $1.90. While we don’t begrudge these big guys the chance to own a $3.00 stock at $1.90, what about the rest of us? In any case, the institutional involvement speaks volumes - in our opinion, this stock is now getting some serious traction with the big players.
Get in before it takes off next week!
Investor100
AI
