Jones Soda (JSDA)

[Chart Addict]

Here are the Fibs on the latest move



From left to right, we see JSDA's price pinched between the 50 and 200 day MA. Not liking the compression, price dropped in late August - early September.

During this period of downward consolidation, four distinct legs came to define the true support line. (It is from this four-point support line that the Fibonacci grid was extended).

Thereafter, the potential trend reversal printed on the chart when priced hopped onto the 200 day MA, finding strong support there for some days. (The price was now clearly content above the 200 day MA - itself a significant development).

The last two upward moves and their pullbacks are encouraging, inasmuch as where they found support on the pullbacks. Ignoring the Fib gridwork for the moment, price found strong support at MA 50. Note that in both instances during the last upward thrusts, the pullbacks came down to find support simultaneously on the 50 MA, as well as at critical Fibonacci support levels.

The question for today (Friday) is: Will price effectively "bounce" off of these multiple support zones, and begin its ascent anew? If so, I would interpret this as a buying opportunity.

If, on the other hand, price falls below its current support level, I would take this as an indication that the trend reversal may not yet be fully developed. Indeed, a significant drop below the current low of $0.41 may indicate a complete pattern failure.

Meanwhile, out in the real world, there is the buzz of people from such places as Seeking Alpha, trying to tell us why this may be a good time to buy into the soda biz. I typically ignore such chatter, but do not exist in a vacuum.

I believe that the technicals more often than not precede the fundamentals, and that such chatter invariably comes as too little, to late.