First it needs to be mentioned that I'm not a shareholder in this issue but am an early buyer of another one of the area plays.

Not's strength today has bettered a one month old declining trend-line which is quite positive and is an early indication of higher prices to follow. During this last month volume as shrunk compared to the two previous months which is normal during resting periods. Volume is expected to increase next week to the upside as a declining volume trend-line appears ready to be broken.

Most funds employ the use of black boxes that alert their traders when a stock's established trend is changing direction. Some black boxes are programmed to read the differential between a 12 day and 26 day moving averages. The difference between the two is plotted with a different line which is compared to a 9 day moving average. When this nine day moving average is breached a signal is sent to the traders and they start aggressively buying or selling. Not all black boxes are the same but to a strong degree this is basically how they work.

For an example go to bigcharts.com and select "MACD (12,26) MACD (9) Divergence" under the advanced chart box and see graphically how it all works on a stock. If you want to see NOT's stock hit ca:NOT. You will see a faster moving blue line and a slower moving brown line. The blue is the 12 day moving average and the brown one is the slower moving 26 day. When the blue line hooks toward the brown line it indicates that the nine day moving average of the differential between the blue and brown line has been broken and the trend in all probability has begun to change.

This currently is what has just happened to the indicator on the Not chart.

The interpretation of Not's potential is around to $9 per share, give or take some some, over the short term time period ahead.

The above is an attempt at understanding one specific indicator, along with trend lines, as it relates to understanding stock trends. Readers are reminded that there is no guarantee that this analysis will be valid on this particular issue for the time period mentioned. Readers are advised to do their own DD and think for themselves before important decisions are made in respect their investments.