NewStream Energy Technologies Group Inc (NSGP)

[trader53]

CCTC needs a "Positive Divergence" in order move sharply higher.
A Positive Divergence was forming between January 19th and February 12th, and that is why "technically", the stock jumped from .034c to .42c. Fundementally, it was factors such as the stock having been removed from the Naked Short List, and the NEWS that came out. Also, technically, the price decline occured after a 1-2-3-4-5 Elliot Wave down sequence.

A move below support of .10c would give it that divergence.

Divergence is where the MACD line and the price are moving in opposite directions.

When the price of the stock is moving down, and at the same time the MACD line is moving up, it is said that there exists a divergence.

Divergences set the stock up for a big move up, because you have the downward price causing holders to SELL, and at the same time you have strong buyers BUYING.

Volume picks up as the SELLING builds, and so does the BUYING.

http://stockcharts.com/h-sc/ui?s=CCTC&p=D&yr=0&mn=6&dy=0&id=p19801132769

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_average_conve