The author of this article, Desmond Fargo, gave me permission to publish this piece on Creative Edge Nutrition (FITX)
The purpose of this article is to provide useful insight into Cen Biotech's recent press release regarding license, and also provide a technical and fundamental analysis of the current market implications for CEN Biotech.
Investors trading in the company Cen Biotech (ticker: FITX) enjoyed a rising share price by as much as 25% on August 26th 2014. Much of the company's ongoing debate of MMPR license approval transpired readily after the company's CEO, Bill Chaaban released a short and powerfulpress release that left an indelible impression on the company's future prospects. In the release, Bill Chaaban stated:
" 'Health Canada inspectors were present on July 31, 2014 and conducted their pre-license inspection. The facility was built according to specifications provided to Health Canada. We look forward to the next steps in this amazing journey,' stated Bill Chaaban, President & CEO."
There are various ways to extrapolate this information, with the vast majority in tandem agreement that license is indeed at hand, but seemingly awaiting for Health Canada to send an official update on their list of authorized licensed producers website.
The underlying correlation between the fundamentals and technical analysis can be a topic of debate for many investors, often elusive to quantify. However, in rare occasions, one does see both technical and fundamental analysis coincide to paint the same outlook of market expectations. Below are two important charts that investors should take notice 1) Rounding bottom pattern and 2) Triangle Pattern.
(click to enlarge)
Courtesy of Peter Canellis, from Traders Lounge
FITX Rounding Bottom Pattern
Rounding tops and rounding bottoms occur as investors have an almost paradigm shift in their bearish or bullish expectations. This gradual, yet steady shift ...
