+0.11 (5.27%)
Today CNIT recovered a portion of what it lost yesterday, taking advantage of a short lived rally until mid-day and experiencing extremely low volume in the afternoon (including few sellers, as it held near the HOD).
Aside from huge selling that may occur if there is a general market sell-off, we may see CNIT experience a new range, which will probably be in the $1.90 to $2.20 range. If the market is weak, I could see the range forming around $1.85 to $2.05, where the stock remained for the majority of June.
You can see from the previous chart that consolidation previously occurred around this range, and a fair amount of support was seen around the $1.85 area (even in the first major sell-off at the end of May, it took a lot of effort from sellers to breach that range). In addition, the 50dma, which is now at $2.18, will likely be a new resistance area for the stock. As the 50dma continues to go down (if CNIT doesn't break out upwards), it will then be the line to cross on volume in order to start a new upward trend.
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