6:15 am Pacific
John: Yesterday, Currie Rose (CUI, TSX-V) opened at 20.5 cents, drifted down to a low of 20 cents, rose to a high of 22.5 cents before closing at 22 cents for an increase of half a penny on CDNX volume of 755,000 shares. This stock continues to show very bullish tendencies as illustrated by the chart below:
We see from this 2-month daily chart that CUI broke to the upside from a small horizontal channel on October 21 at 13 cents, and climbed steadily over the next 13 sessions to reach a 52-week high of 24.5 cents. Over the last 7 sessions it has consolidated and formed a bullish downsloping flag. We see strong support at the 20.5 cent level and a strong support band between the 61.8% Fibonacci level at 19 cents and the support at 20.5 cents. Also providing strong close bullish support is the EMA(20) moving average which is at 19.6 cents and pointing up. The probability of any downside is very slim.
The set of Fibonacci levels (green) shows the next target level is at 32 cents (this is not a BMR price target as we don’t give price targets but a theoretical near-term Fibonacci level as a guide for investors based on technical analysis). Since the consolidation began the volume has been relatively low, but yesterday the volume was higher than in the 2 previous sessions.
Looking at the Indicators:
The RSI is at the 60% level and pointing up. It has unwound its previous overbought condition – this is looking very bullish.
The ADX trend indicator has the +DI (green line) in decline due to the consolidation but still relatively high at the 30 level. It is above the -DI (red line) which is low and flat at 9. This is a very bullish orientation because there is little chance of the -DI crossing up over the +DI to reverse the trend. The ADX (black line) trend strength indicator is very high at 61 and flat showing a strong consistent uptrend – very bullish.
The Chaikin Money Flow (CMF) is in the green (bullish) and showing the buying pressure is increasing each day – very bullish.
Outlook: Technically, Currie Rose remains in a very bullish state which supports the strong underlying fundamentals with this company as BMR has outlined. CUI has been trading in consolidation recently with very strong support. We could see a breakout to the upside very soon. Watch for a breakout above the blue line of the downsloping flag.
