Was alerted on this stock on 22nd Oct 2010 and did an analysis for it.
Looking from the year 2008 till now, AFP is having a multi years resistance at $0.60 level. It tried to break that level at least 5 times since 2009 but failed to do so. Since then with a resistance at $0.60, it was forming an ascending triangle formation with $0.60 as the breakout point. On 4th Oct 2010, it broke the $0.60 resistance with high volume and that can be considered as an ascending triangle breakout. The projected target for the ascending triangle breakout is $0.745 ( was a previous support level in the early part of year 2008 ). The 4th Oct 2010 breakout failed to reach the projected target and since pull back to do a back test on the breakout level of $0.60 during the from 15th - 22nd Oct 2010 and managed to hold firm without invalidate the ascending triangle. On 22nd Oct 2010, price moved up again with support at $0.60 and potentially could be heading towards the projected target of $0.745.
AFP in August 2010 proposed to issue bonus warrant to shareholders and recently its Indonesia subsidiaries undergo restructuring and that was for the good of AFP business overall. The bonus warrant issue could be the catalyst to move the price level to the projected target of $0.745.
