If you want proof that it can pay to bottom-fish, here you go…..Ckrush Entertainment (OTCBB: CKRH) shares surged from a low of $.17, hit on the 18th, to the current price of 0.29$. Folks, that’s a 70% gain in less than four days. Granted, the precise bottom was probably impossible to pinpoint, but even buying at the high of $0.19 on the 18th would still leave you up by 52% on the trade.

While we applaud Ckrush shares, and congratulate those lucky few who dared to buy at what seemed like the beginning of the end, that’s not even our purpose with this entry. No, there’s a totally seperate point here……and one I already made above.

Sometimes, the right move is to go against the grain, and bet on a reversal. No doubt it’s a dangerous game to play, but it can pay well when you’re right. In CKRH’s case, it did indeed pay well.

Were there any hints here that could have suggested such a bounce was in the air? I see a couple if clues. The first one is a re-visit to support around $.17, where the stock made a handful of lows in September/October before a few buyers stepped in (although half-heartedly). The other hint was the shape of the bar on the 17th…..it’s called an inverted hammer pattern, as the entire day’s range is tall (relatively), with the open at the low, and a close at least in the lower half of the range. Yes, it’s esoteric - even by candlestick standards. Yet, it was an accurate hint of what was to come.

And in the interest of fairness, this probably isn’t a pattern I would have played in search of an upside reversal. It’s just not my personal taste when it comes to trading; I prefer to see momentum. However, that doesn’t make me right all the time. This instance is an example of that.

Perhaps more importantly (or at least as importantly), Ckrush’s shares have finally managed to clear what I see as a long-term resistance line….and they did it on a major volume surge. In my opinion, it’s a huge victory for everyone as it should unshackle the stock quite a bit. Again in the interest of fairness, I don’t personally know that I’d jump in blindly here. I don’t like to chase stocks. I’d rather wait for a pullback. And no, that’s not always the right decision either. It works for me though. As for what works for you, and whether or not CKRH should be of interest to you…..well, only you can decide how to handle that.