Courage Marine looks like finding a good support at between $0.18 to $0.185. This is the 50% Fibonacci Retracement Level and this has been proven very reliable for the past one year after tested 5 times. The company also started to turn around to make profit last quarter but the share price does not move much. The company has stong balance sheet with Current Ratio at about 10 and generating positive cash flow from its operation. Technically this level (between $0.18 to $0.185) is a safe entry level but not for short term trade.
Courage Marine is still in the consolidation phase due to lack of trading volume. The stock price is currently trading within a tight support ($0.185) and resistance ($0.19 which is a 200D MA) range.
Things to watch out:
- The moving direction of 20D MA will determine whether the trend is moving down or moving up.
- The presence of the trading volume if the stock price breaks the support or resistance.
- Without the above two indication, Courage Marine probably will move sideway for a while.
This week this counter has a very long marubozu candle and close the week at $0.235 with a volume spike of 13.9M shares traded in one day (on Aug 14). Standard Six Technical Indicators are signaling short term bullish convergence.
Week TA Summary
* Stock price above 20D, 50D and 200D MA and all three MAs are in uptrend. 20D MA crossed 50D MA.
* Stock price on the upper boundary of Bollinger Band.
* MACD crossover (blue over red) on upper half showing bullish convergence.
* Stock price on top of Parabolic SAR.
* RSI at 55%.
* Stochastic blue-red crossover in the up trend.
The chart is also having a very nice Fibonacci retracement back to $0.197 (61.8%) and should form a very strong support line. If the stock price can break the resistance of $0.25 and stay on top of $0.25 with healthy volume, it may go all the way up to $0.337 (161.8%) by Jan 2010 base on Fibonacci fan.
3 Years Historical High = $0.51
Current Price = $0.235