NewStream Energy Technologies Group Inc (NSGP)

[trader53]

Why I see a test of .097c

http://stockcharts.com/h-sc/ui?s=CCTC&p=D&yr=0&mn=3&dy=0&id=p78306650260

Look to the left-side of this chart of CCTC.

You will notice .096c is labeled. This was a resistance area.

The Rule, is that resistance becomes support and visa-versa, support becomes resistance.

This is why I believe that .097c will be tested, by breaking the recent support of .10c, and testing the previous resistance of .096c.

Also, you will notice, that from the .42c high, the stock came down to .1081c in a 1-2-3-4-5 sequence. It then went up to .18c in a 1-2-3-4-5 sequence, and then down to .10c in a 1-2-3-4-5 sequence, and then up to .185c in a 1-2-3-4-5 sequence.

If you were to count a 1-2-3-4-5 sequence from the .42c pivot down, you would count .42c to .1081c is "1", from .1081c to .18c is "2", from .18c down to .10c is "3", from .10c to .185c is "4", and from .185c down to my target of .097c would be "5".

Under "Elliott Wave Theory", this is how a technician would approach wave counts. They move in either 1-2-3-4-5 sequence, or a,b,c, sequence. Minute waves form minor waves, which form major waves and intermediate waves. The way in which this waves form are however left open to individual interpretation, as you will find that technicians disagree between one another on their views of counting.

From my perspective, the move from .034c to .42c was a 1-2-3-4-5 sequence move up, and within that move, on an hourly chart you would be able to see each wave had a 1-2-3-4-5 minute wave sequence. The move down from .42c to where the stock is currently, is also broken down in a 1-2-3-4-5 sequence.