Indicators based on channels, bands and envelopes are designed to encompass most price action. Therefore, moves above or below the channel lines warrant attention because they are relatively rare. Trends often start with strong moves in one direction or another. A surge above the upper channel line shows extraordinary strength, while a plunge below the lower channel line shows extraordinary weakness. Such strong moves can signal the end of one trend and the beginning of another.

With an exponential moving average as its foundation, Keltner Channels are a trend following indicator. As with moving averages and trend following indicators, Keltner Channels lag price action. The direction of the moving average dictates the direction of the channel. In general, a downtrend is present when the channel moves lower, while an uptrend exists when the channel moves higher. The trend is flat when the channel moves sideways.

A channel up turn and break above the upper trendline can signal the start of an uptrend. A channel downturn and break below the lower trendline can signal the start a downtrend. Sometimes a strong trend does not take hold after a channel breakout and prices oscillate between the channel lines. Such trading ranges are marked by a relatively flat moving average. The channel boundaries can then be used to identify overbought and oversold levels for trading purposes.

Here's the link to the TA graph:

http://stockcharts.com/h-sc/ui?s=ISM.TO&p=D&yr=0&mn=6&dy=0&id=p46999831171

Note we have had two excursions upwards ("channel up turn and break above the upper trendline can signal the start of an uptrend") breaking thru the price channel. I am trying to watch this to see if we are getting the beginnings of a new direction or trend established.

On the first excursion Jan 10 we definitely settled into new territory as the stock liked to trade up and above the 30 cent levels. Most recently this week, we have popped thru the 40 cent mark and testing whether we stay up there is the next challenge if there is indeed an upward trend being established? Our Friday close could be interesting for an end to an interesting week on no news. IMHO

Here's some daily volume stats: