CGYV’s one day massive move on huge volume was a nice surprise, but does it really mark a trend reversal, or was it simply on one day wonder that is likely to have limited follow through?

It’s a little too early to call.  There’s arguments both ways. I suspect it was the first day in what might have been a major direction change, but I only say that because the stock is so absurdly undervalued and the company is growing so rapidly. It makes sense. However, making sense is not enough in today’s world as irrational behavior abounds globally.

Since the stock is willing to back down on considerably lighter volume today, it makes sense to look at a chart for appropriate entry levels for those so inclined.

You can see the huge volume bar associated with yesterday’s dramatic rebound in the stock. Today, the stock is coming back down on far lighter volume, suggesting investor appetite to buy this stock has faded today from yesterday’s activity.

Perhaps there’s a little profit taking going on here from the $1 mark early yesterday. That’s a pretty attractive one day trade for those who were accumulating when the stock was quiet.

If you want to look at Fib retracements off the one day volume bar, I’ve included them. In the early going, the stock has delivered the first corrective leg- the 38.2% retracement. For those who are looking for a reasonably good entry level, $1.18 is your number. The price has already gravitated there.

If you are looking for the absolutely ideal entry level, $1.09 is your number. I don’t know if we’ll get there, but anything is possible in this environment.

Comments and questions are welcome.