Replies to post #46 on Buy On Dips (DIPS)

[Go_Stocks]

CKEI would belong to "Bottom" buster type play.

The standard stochastic settings (14) won't give you a good measure on where the bottom is. I use stochastic (21,10) in this case, it gives a clear view of the bottom. This stochatic indicator has been straight down since 02/21/2006. Stochastic (21,10) is below 10% level. 50CCI is right below 0, but can go above 0 quickly. RSI is below 30% too.

It is trading at 0.02, this is a support area, it has been bounced from 0.02 several times. If you look at the past trading pattern, one day huge jump in the near-term cannot be ruled out.

Also notice there is a negative divergence in the last run-up. The stochastic indicator was lower low, but the price was higher high. The price had to drop more to balance such a big divergence.

Resistence at 0.026 and 0.031.