In spite of the lousy stretch for PPS this week we are still riding the 50 day moving average (barely) and are now below the lower Bollinger band. Yes, one could say this is not truly a chart stock, yet it has seemingly obeyed the chart so far. If we bounce up off the 50 ma and at the same time head for the upper Bollinger band it would be a rise in PPS that is in line with the chart.
The chart (obviously) shows a decay in PPS since March 20, a date there was expectation of some sort of M+A to take place. As a result of nothing happening, the price has decayed from 3.43 to 3.02. But the chart is still holding and it doesn't look that bad -- YET. But if this crappy trend continues - then I don't know. And although it has obeyed chart rules so far, anything can happen with this particular stock.
Granted, the MM's have assisted in the downward trend. I watch the trading all day and sometimes I see the ASK dropping immediately after it is hit, the new PPS often is not raised to reflect the hit on the ASK and often the BID keeps getting lower no matter what happens. That's how the MM's make their money, as Bluee Foxx's recent post describes and they can get away with it now, especially with this poor daily volume lately.
I guess there was anticipation buying around March 10. We hit the upper Bollie. Now we are below the lower Bollie, but still stay riding the 50 ma. But since this company produces nothing yet and has only 4 employees, if something doesn't happen soon, then the non-chart obeying aspect of this stock may take over.
What I am trying to say is I don't think longs should be dumping at this point. But if the BOD continues to allow things to decay, then to each their own.
All IMO.
