Friday, February 1, 2013

Teasing the resistance

Our buddy CNIT ended the week on a pretty positive note, up 4.85% on >60K shares traded. If the volume had been higher, though, I'd be more optimistic. On the other hand, this was a very compelling positive sign compared to yesterday's flaccid action.

There's clearly a lot of resistance in the $1.10 to $1.20 range. This week was notably positive rather than sideways, and suggests that next week CNIT will attempt, probably more than once, to get above that level of resistance.

Just like back in October 2012, however, it could easily falter back to the ~$1 level. BUT, if there's enough volume to show broader investor appeal, then the stock might just have a breakout chance.

There is no new news from the CNIT website as of today. Any other news coming out of the company in the coming weeks could also positively impact the stock price.

Have a great weekend!

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