Replies to post #15786 on American Diversified Holdings Inc (ADHC)

[SchragerTrader23]

ADHC CHART WITH DESCRIPTION

http://stockcharts.com/h-sc/ui?s=ADHC&p=D&b=5&g=0&id=p23256488361&a=272854251

What a great start to this new week! Many great plays around, but nothing with the potential of ADHC imo! Now let me explain why.

1)RSI is looking very very nice, what I like about this situation is that we are beginning our move up, yet the RSI still hasnt even crossed the 50 mark! Meaning we have a long run ahead of us! And I could not be more excited.

2)It is most important to discuss price action and what I saw today. First off let me start by saying we bounced off support very nicely, drawn on the chart with the green line, and have not looked back since. This price action we are seeing is the handle portion of the cup and handle pattern a very sweet chart pattern which IMO will end very nicely for us. Volume was perfect here for the breakout, you want to see higher volume in a breakout move and this is what we saw. The close stopped just at the MA10 today which is at .0051. If you were watching the trading action today, you saw a few games being played by MM's, if not I believe we would have seen a close at or above 6. The next obvious resistance is at the red line I drew, which is the previous high of the original run. As this is a cup and handle pattern , this resistance needs to be broken and we will keep on moving up. I see no reason why we should not reach the MA50 in time.

3)ADX one of my favorite indicators is looking very nice. Anyone who has read my chart descriptions before know how much I like the DI+ DI- cross, this brings in a lot of buying at the ask, it is a tremendous buy signal..and its coming!!! ADX line is also moving down, meaning the now downtrend is coming to an end and a new trend will begin.

4)CMF is looking very nice, money flow is coming into the stock very nicely!

5) Full stochastic is looking great! still a lot of room to go for us to enter the overbought zone! Hold onto your horses!!

6)Accumulation as seen here is increasing again, which is to be expected as many are becoming aware of this beauty of a chart!

7)Force is starting to move up again and has never moved below the green zone after the last run, very strong here!

Here is a link to what I mean when I say this is a cup and handle pattern, i expect this chart to turn out that way :) we are in for a fun ride tomorrow!

http://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:chart_patterns:cup_with_handle_cont