NewStream Energy Technologies Group Inc (NSGP)

[trader53]

A Special Technical Update,
for Thursday May 27, 2010


CCTC has "a pattern", that has displayed itself repeatedly.

This pattern is the "5-Wave pattern". ( 1-2-3-4-5 sequence ).
This "pattern", creates the up and down "Cycles", that are easily seen in the Stochastic line in the following chart.

http://stockcharts.com/h-sc/ui?s=CCTC&p=D&yr=0&mn=6&dy=0&id=p41544751386

After each 5-Wave move up, the stock corrects in a like manner, with 5-Waves Down.

Said another way, each 5-Wave advance, is then followed by a 5-Wave decline. And, each 5-Wave decline, is then followed by a 5-Wave advance.

After each corrective 5-Wave pattern down, the stock begins a new 5-Wave pattern UP.

Currently, IMO, CCTC has completed Wave 1 of this next 5-Wave pattern and is beginning Wave 3, with Wednesdays move up, to 0.1140c, and is in the process of creating Wave 2, the "Corrective Wave".

This means that 3-more waves are due to follow this corrective Wave, and they could all take the form of the "Impulse" variety.

In the following chart, you will notice these 5-Waves down.
The top starting point is 0.185c on April 10th.
The first down move was to 0.125c on April 20th, Wave 1.
Then it jumped to 0.16c on April 21st. This was Wave 2.
Then the stock moved down to 0.105c on May 4th, creating Wave 3. Then the stock jumped again, to 0.145c on May 8th, creating Wave 4.
Then it moved down again, to 0.088c on May 14th, to establish the "A", of Wave 5, an "extended wave", and jumped up the next day to 0.11c to establish the "B", of Wave 5, and then down to 0.077c on May 25th, to establish the "C", of Wave 5, to complete the 5-Wave Pattern.

So, from 0.185c down to 0.077c, from April 10th to May 25th, a 5-Wave corrective down phase was created.



A new Up Trend seems to be in place currently.
From Tuesdays low of 0.077c, up to the intra-day high of 0.1140c on Wednesday Wave 1, down to todays low of 0.090c, Wave 2.

These next 3-Waves could take the form of a "Strong Impulse Move", where "the waves" happen in "Intra-day" manner. This means that you will be able to see the waves on a 5-minute, and
15- minute chart.

If the approaching Up Trend is an "Impulse Move", it should happen with NEWS being the catalyst, and volume will be massive !!! Rather than the mere 300,000 traded each hour, you will see 5 or, 10 million traded each hour.

The last "Impulse Move" took place on February 17th and 18th.
The 1st and 2nd waves formed over 3-days, February 10,11 and 12.

Note, that there is a "Positive Divergence" between the Money Flow Index Line and the price. The price has bee falling, while the Money Flow has been rising. This implies a reversal in the falling price is approaching, and the price will soon move up!

We'll have to wait and see how it plays out.

http://barchart.com/chart.php?sym=CCTC&style=technical&p=DO&d=L&sd=&ed=&size=M&log=0&t=BAR&v=1&g=1&evnt=1&late=1&o1=&o2=&o3=&indicators=SMA%2820%2C16711680%29%3BMFI%2814%2C255%2C100%2C39168%2C16711680%29%3BSSTO%2814%2C3%2C16763904%2C6724095%29&chartindicator_1_code=SMA&chartindicator_1_param_0=20&chartindicator_1_param_1=16711680&chartindicator_2_code=MFI&chartindicator_2_param_0=14&chartindicator_2_param_1=255&chartindicator_2_param_2=100&chartindicator_2_param_3=39168&chartindicator_2_param_4=16711680&chartindicator_3_code=SSTO&chartindicator_3_param_0=14&chartindicator_3_param_1=3&chartindicator_3_param_2=16763904&chartindicator_3_param_3=6724095&addindicator=&submitted=1&fpage=&txtDate=&x=28&y=10