A True Story

(This article is also published on Yahoo CMGI Message Board, on January 23, 2005)
When I bought SINA at $1.50 on April 10, 2001, my target price is $10.00. At that moment, few people believe that SINA can reach $5.00.
On Jan 2003, SINA reached $10.00, but soon it dropped to $7.00 due to profit taken. I wrote one article “Trend is your friend!” (See SINA Message Board, Message 8639)
I sold SINA at price $12.5 on May 13, 2003, since it reached my price target. However, I did not realize that SINA could reach $40.00 just 4 months later.

Now, let us talk about CMGI. Currently my long term CMGI target is $10.00.
CMGI Stochastic Oscillator indicates it is the time to Strong Buy.

If you look at CMGI’s Stochastic Oscillator chart, you will find that no matter from fast Stochastic Oscillator chart, or from slow Stochastic Oscillator chart, the reading is far below 20%. It means CMGI is over sold.

If you look at fast Stochastic Oscillator chart, you can even see that %K line is crossing %D line, which means STRONG BUY!

CMGI currently is in the trading range (or consolidation period). This trading range period might be lasting one or two months. After then, a perfect Cup & Handler chart will be formed. A Cup with Handle chart pattern usually indicates that a breakout is pretty soon. For CMGI, when the Cup with Handle chart breakout, it might be at least $5.00 or higher.

Good luck to everyone!

You might be interested in reading the article with the following link:
http://www.stockcharts.com/education/ChartAnalysis/cupHandle.html