I’ve been watching the small pullback in shares of CPNE of late, and technically the stock just couldn’t look much better.

For those of you who follow my technical analysis, you know I like both trend lines and 61.8% Fibonacci Retracements. Technical analysis is far from perfect. It should be viewed as simply an indicator to tip the odds in your favor.

First, decide if you like the company, the story, and the stock. Next, use a little bit of technical analysis to decide on entry and exit points.

Those of you who are following the situation know I am convinced CPNE is going to $2 in pretty short order. If you believe as well, you should be accumulating unless you feel you already own as much as you want.

The stock has been on a tear of late. It was at about $1 mid month. It hit the $1.40 mark last week, and has since taken a well deserved breather.

Here’s the current chart:

Here’s what I like about the chart. I’ve drawn an uptrend line going back to when the stock starting trading back up in the Spring. In addition, I’ve put in the 61.8% retracement level for the move over the past two weeks.

Note that the 61.8% retracement level and the trend line come in almost at the same level (about $1.20). These are called “nodes”- prices where several technical indicators converge.

The stock bounced nicely off the $1.20 level today, and confims this was an excellent pull back to take advantage of. It also confirms the stock is still in an uptrend until further notice. If you are looking to add to or open a new position, now is the time.

Comments and questions are welcome.