Monday, December 21, 2009

California Pizza Kitchen (CPKI) ... bouncing from support .... Low risk entry ....

As seen below CPKI shares (an earlier recommendation of ours) is at the lower end of its trading range and moving higher.  Buying here just above the range low and near support at $ 12.30 (purple line) may offer a low risk entry as opposed to waiting for the secular technical turnaround which only occurs on a breakout above resistance near $ 17.15 (red line and arrows).  This formation appears to be a longer term bottom forming in CPKI shares.  Buying here is for those who want to jump the gun, be early or limit downside in the event of being wrong.  Only taking out resistance, a trade for those who want more confirmation, would suggest a much larger advance is at hand.



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