Creative (C76) Update

After an inverter Head and Shoulders launching success, the next level of platform witnessed was flat based. We can anticipate beforehand that the success was inevitable from the right hand shoulder as it was higher than the left one. A good rule of thumb is the 3 days observation after the breakout on the 22 Nov 2005 to gauge the likely trend. As mentioned the flat base denotes tight range consolidation. Once penetrated, the ensued pattern would be the likely trend! So it did and the latest 2 prices have the same value of $13.90 spoke for themselves. Clues from the drying up volume run in congruence with the Trade Summary Report exhibited seller disinterested to part at that price. Thus, I have a strong sense that price will trend upwards! All other TAs remained as good as ever. However, the Stochastic seems a bit wiggly and bearish crossed. But Stochastic’s ranking ought to be greatly reduced as its superiority only stands out in consolidation forecast not trend prediction. ROC is the chart that is good as trend indicator and it is telling us that the trend is still very much on the upside. With RSI on the 95 with no sign of tilting down, good days ahead can be envisaged!. From Past history, Christmas (Shoppers at large) is always merry with Creative, and I think this year is no different!