CBAI Chart Question

[IAMCLP1]

So I am trying to learn chart reading and apply it to penny stock. (As are we all)...

My question is from the chart how could you well what level CBAI was going to fall back down to? What indicator pointed to the resistance level? Along with the growth over the last week... I have been doing alot of reading on StockCharts.com but I think it would really help if someone could explain it a little better by looking at this chart.

http://stockcharts.com/h-sc/ui?s=CBAI&p=D&yr=0&mn=1&dy=0&id=p27846926196

Now I understand with stocks like these charts are not everything, as they could release news or some other type of PR to help move the traders one way or another.

[Dr PennyStock]

.013 was resistance on December 30 and 31, previous resistances become supports and previous supports become resistances, .0113 and .010 were also resistances, now possible supports.

[IAMCLP1]

.013 was resistance on December 30 and 31, previous resistances become supports and previous supports become resistances, .0113 and .010 were also resistances, now possible supports.

  That easy huh? ... Pulling the graph back 3 months if I can reading this correctly (Student still in training) The .010 resistance started Dec. 14th, then the .009 was the support after but started the break-out on the 28th.

Now how do the ADX -/+ indicators play a factor in this or did they?

[IAMCLP1]

Second question would be how did we not know .0165-.017 was not the resistance point? (Thinking out loud, is this due to the high volume (sale-off) that day, which in turn cause the downward spiral?) ... still happening today down to .0149 -2%

[Dr PennyStock]

.013 was resistance on December 30 and 31, previous resistances become supports and previous supports become resistances, .0113 and .010 were also resistances, now possible supports.

  That easy huh? ... Pulling the graph back 3 months if I can reading this correctly (Student still in training) The .010 resistance started Dec. 14th, then the .009 was the support after but started the break-out on the 28th.

Now how do the ADX -/+ indicators play a factor in this or did they?

No, the .010 resistance began on the end of September, the .009 was resistance on December 14th.

You can see the ADX buy signal on the first day of December, when the +DI crossed the -DI to the up side. 

http://stockcharts.com/h-sc/ui?s=CBAI&p=D&b=5&g=0&id=p37128491181

I talked about .016 being a resistance point, that is why I gave sell recommendation, look the chart below on July 2008, and, you will see .016 was a resistance point before.

http://stockcharts.com/h-sc/ui?s=CBAI&p=W&b=5&g=0&id=p06919626113 

[IAMCLP1]

I was not looking far enough back for the resistant points - Good information, I have these charts all saved and marked for reference points looking forward on other charts ...

Thanks for the great information, I am sure I will have other questions moving ahead in these uncharted waters