CAJ looking ominous now. Especially after today where 0.29 was...

CAJ looking ominous now. Especially after today where 0.29 was nibbled at on a red day. Technicals are showing signs of buying pressure and impending breakout. My take:

Looking at price action from early March, there are a number of significant levels breached which is very significant. I define significant levels to mean levels where protracted buying or selling has occurred at that level.

1. A significant support level at 0.27 (green line) was breached by sellers early April.

2. Buyers quickly pushed price back to above that level, showing weak selling pressure which is a great sign.

3. Buyers continued and pushed past a significant resistance level at 0.28 (red line), and then after a weak retrace from the last sellers at 0.28, price hit prior significant support of 0.27.

4. From 0.27 buyers pushed past the next significant resistance level of 0.29 (blue line).

5. Now price is meandering around the final significant resistance level of 0.295 / 0.3 (pink line) which is another great sign. It momentarily breached this level but sellers at 0.295 not quite done yet.

6. Sellers may come from nowhere now and short at the top of range now but if they do we're hoping for the significant support level at 0.27 / 0.26 to hold.

The best part is that a clear breakout from 0.295 / 0.3 will attract big dollars. Numerous fund managers talk about the rudimentary breakout trade after lengthy range bound trading. No doubt they will be watching closely and will enter above 0.3 / 0.31 with decent money, especially as CAJ fundamentals are not bad either. I believe some smart money is coming in now, but other smart money is waiting for a very clear break from 0.30 because they trade longer term and want to stay out of the trenches.