Figure 3: Trading in a range with Stochastic

Following from Figure 1, Figure 3 shows that from August 2006 to October 2006, Celestial was in a trading range between $1.53 to $1.61. When the price tested the support around the 2^nd week of September, the Stochastic was in the oversold region indicating a high probability of the price turning up. With the price trading near the support and Stochastic in oversold, we can thus make our entry and look to sell near the resistance for profit. Similarly, there was another opportunity in the first week of October 2006.