Well,.... technically speaking, could today not only be a bottom, but could it be a Double Bottom? Not only a double bottom, but a double bottom that is very oversold and due for a simpathy bounce.

If my eyes are reading the charts correctly could the low in April at $3.58 and the low today at $3.55 be a market changing Double bottom trend pattern? While DB's are not always accurate and require a solid confirmation the characteristics do look somewhat convincing. Also while the second bottom was lower then the first bottom the % are within tolerance. What are some characteristics of a DB:

1. The stock should be in a downtrend as a DB is a reversal pattern indicating a potential change in trend. For future SP trading the price must not drift lower then the first left (in our case $3.58) or otherwise the confirmation is denied. (downtrend YES)

2. The left bottom low has higher volume (2.3M) then the right bottom (.8M). (YES)

3. Time between bottoms: Analysis suggest that the duration of the intervals should be from one month to three months for best success; left bottom April 25th; right bottom May 30th. (YES)

4. The SP increase from the first low ($3.58) should be somewhere between 10 and 20%. (high price was $5.25 so YES.)

So, what we require now it confirmation of the double bottom, which means a breakout. That means we need to move higher from our current levels and it should be a decisive move above the highest high which is set at $4.30. (April 25th high) The stage is set so let's see it if developes. Remember we cannot go below our first left bottom which is $3.58 on a closing basis. Also, remember that technical analysis is not always accurate and for us to have a any probabilty of success the SP needs to close above $4.30 and higher to be a confirmation.

Sound simple doesn't it! It doesn't always work as planned however...so don't go and bet the farm on it. This is good technical analysis and it would be very interesting to see if it unfolds as described so lets have some fun with it.