THIS IS THE TECHNICAL REASON
WHY ABC LEARNING FAILED in 2008

CLICK Here for the chart of ABS - 2004 to 2008 - Weekly Chart
Note : The RED parabolic provide stock support until November 2007. After that, all support is gone, yet, the directors of ABS
did nothing to avoid the imminent collapse of ABC Learning.

Stock support ENDED at $5.01 and stock holders had a full 6 weeks from November 23 2007 to January 4 2008 to sell out at this price before it fell even further.

CLICK Here for the chart of ABS - March 2007 to April 2008 - Weekly Chart

To improve the image, click anywhere on the chart after it loads.

TECHNICAL ANALYSIS DIARY

2007
1st Primary SELL
12th January 2007 at $8.00

Next PRIMARY SELL
2nd November 2007 at $6.44

Please refer to this DAILY CHART - APRIL - AUGUST 2008

Compare the ABC Learning chart to HIH Insurance Daily Chart - HIH 2000 - 2001

2008

30th May 2008 - Peaks at $1.54 - a "parabolic hook" pattern is forming - i.e. a "saucepan" within a "saucepan"
(Note: saucepans are BAD - tophats are GOOD)
On this day, On Balance Volume has peaked but Inertia is failing.

June 3rd - ABC Learning (ABS) triggers Primary SELL signal. CAUTION - a parabolic "hook" may force a decline very soon.
Price LOW = $1.42

3rd June - $1.42 Low - 1st Primary Sell is triggered and 2 day Money Flow is at ZERO%
4th June - $1.44 Close - 3 day Money Flow hits ZERO%.
6th June - $1.33 Low - SAR (Stop and Reverse) EXIT signal and 5 day Money Flow hits ZERO%
10th June - $1.22.50 Low and Close - SAR Sell signal - reinforcing SAR EXIT of 6th June - very nasty combo.
Williams% 3 day signal hits ZERO% - oversold BUT this indicates that more downside is imminent.
10th June - MACD SELL signal - all parabolic support is about to fail.
10th June - 2nd and most critical Primary Sell is triggered.

This is going to become VERY NASTY from here on.

13th June - 86.5 cents LOW - 88 cents Close - 9 day Money Flow hit ZERO % and I suspect that the 10 day Money Flow will soon bottom and this is most critical.

The fall has happened as charted - but risk of a tad more downside exists before we see a recovery

If it is not much better than $1.00, ABS is likely to see further downside in July.

Review of ABS continued.
July 26th - Surge to $1.14 on latest news from the USA. Volatility to remain HIGH.

ABS could reach $1.25 in July and if it falters from there, you might like to own my charts to track it into August and beyond.

27th June - Surge to $1.27 triggers both Primary BUY signals. If price falters from here, Primary SELLS could appear again.

1st July - 1st Primary SELL is triggered at 96.5 cents.
Closed at 84.5 cents. Triggered Linear Regression SELL.
Resistance at 68 cents.(may not hold)

7th July - 2nd Primary SELL is triggered at 85.5 cents.
Closed at 85.5 cents. Triggered SAR EXIT.
8th July - Low of 77.5 cents. Closed at 79 cents.
Triggered SAR Down Arrow.

The combo of SAR EXIT followed by SAR DOWN usually points to further weakness ahead. A recovery this week may be short lived.


7th July - Major Primary SELL triggered.
85.5c Close
This Primary Sell may signal the death knell for ABS.

27th July - Another lesser Primary SELL is triggered.
72.5c Close.
Possible collapse is imminent.

19th August - Stochastic 20/80 test shows an EXIT.
This EXIT is very serious. 65c Close.

20th August - MACD SELL signal. Very nasty.
61.5c Close

21st August - A serious collapse is about to occur.
54c Close

22nd August - ABS is in Trading Halt.

25th August - ABS is SUSPENDED.

ABS is in real trouble.
Note : I watched the Buyers of ABS from 18 - 21 August, all lining up to buy ABS stock as it got cheaper and cheaper. All blisfully unaware of where it was headed and also the nasty signals that occur before a major collapse.

These investors forgot that ABS was once valued
at $8.80, so what is it doing at 54 cents?

They also deemed the recent debt level of $1 Billion or more as acceptable. NOT!

Had they been aware that this collapse has charted much like the demise of HIH, i'm sure that they might have thought twice about throwing their money away.