ERHC Energy Inc (ERHE)

[vip1999]

From time to time, I go to ERHE's chart and sort of see the direction the stock is heading in the next few year, months and even weeks.

What I saw is very encouraging and this is not quite wishful thinking. It has been very positive in terms of other indicator other than the PPS.

I am not a chartist but love to learn more about it.

The first thing I saw on a 3 year chart is, we broke the down trend line from December 2006 but we just touched the down trend line of June 2006. I am now watching the Up trend line being formed. On the 1 year chart, the higher low was set last week and if we get a parallel higher high which will be around .30... then a new uptrend will be set and the June 2006 down trend line will be broken.

Notice I am doing a LONG view of this stock, The medium term(6 months chart), we broke the down trend line 3 different times in 2008. First time was late december- early Jan. Then on Jan 17 or 18 we made a temporary new low trend line only to be broken again on Feb 11. The third time was last Friday Mar 14.

Although these breakouts might be too early to say it is on the Uptrend until we have at least 2 more points to plot but it is good to see the down trend, at the moment, has been interrupted.

So I turn to one of my favorite indicator - Accum/Dist. Like any other indicator, by itself it may be mis-leading, but putting it next to the long term chart of 3 years, it just put a smile to my face.

Money flow looks very good as well. I remember the first 2 humps the down cycle was very negative in term of the amount of money flowing out. Ever since from Feb 2006, you can see the negative money flow is very small compared to the Positive side of it. It looks extremely encouraging.

This could be the cycle that will finally take us above $1 and beyond for the look of things.

http://stockcharts.com/h-sc/ui?s=ERHE&p=W&yr=3&mn=0&dy=0&id=p11364609507