Tuesday, June 3, 2008

CPSL - Upturn #2 about to begin? I think so....

CPSL is trading right below the 8 day moving average. While the stock has pulled back quite a bit vs. its previous highs I would note it did that on low volume vs. what it went up on. Many ill-informed traders have taken short positions in the stock, which should lead to short covering. Todays volume, 4.5 million was nearly 2-3x what the stock has been trading down on. As the stock is now flirting with its longer-term uptrend range I am looking for the stock price to start moving up with strong volume to show that the trend is holding and that the stock is due to move MUCH higher in the next few weeks.

Dan Ross

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