Here is a long one, expressing an opinion, like all the posts on the board.
The problem with the stock price action is not the company, product, marketing, CEO, financial strength/weakness, news releases, timing or TA & charting. ALL that is positive.
It's audience!!!
Volume support is the most important part of a successful price movement. It shows sentiment of the retail audience. The chart shows mindset and technical indications, the execution of the mindset.
Volume is the problem and volume is the audience.
Three days ago I posted I didn't like the Friday volume lower then the Thursdays volume, in the retrace bounce. Lower volume in a positive move shows lack of support for that move to continue.
A day or so before that, I posted the average daily volume at 3 to 5% of the OS, was very small and felt this could cause problems, if more new larger investors didn't start coming aboard.
Monday that move to break the 2 cent top resistance reversed again. No new large investors came. Then today selling volume increased as the price fell.
This says to me, the audience pool has exhausted it's capital to invest and as time continues they are taking profits, not seeing new investors support the potential all here see.
The problem as I see it !
First: This audience is made up of little guy penny players. Seen in the very small average trade size closes. 1,000 to 10,000 lot sizes with average daily volumes less then 10% of the OS.
Second: Those type penny players tend to buy runs, sell retraces. What moves price action in pennyland is large day traders, (flippers) as every long & strong calls them. It's funny how much penny boards hate flippers. But without big money coming to a penny play. Price action stalls, once all the long & strongs have spent all their cash. This play is at a point of concern, with a highly positive flag pattern, turning into a possible stalled channel pattern or worst dive.
This is my tip to all. Start wanting flipper day traders interest, because they are the ones buying and selling with large amounts of cash. And IMO the way to get that is break top resistance on increasing volumes.
Third: IHUB, thus 245 board followers here, seem to be the only penny investors or traders interested in the company, CEO, or news timing.
Fourth: Most everyone on this board seem to be already all in and aren't buying more at ask, to support any run. So they are starting to take profit. As long & strong really only lasts till the run stops running. Seen in todays increase in volume in a price fall, as usual.
I just researched the 10 most active stock message boards and found only 1 which was talking about CDNL and that board had 2 posters.
So IMO what's wrong with CDNL's stock price action is there are little if any new to CDNL, coming ( 245 board marks are flat here) And mainly big money flippers aren't here, trying to manipulate gains. Because as long as Market Makers have such little volumes involved in the daily trading. They end up only chasing volume fees, instead of help drive direction to create increased volume fees.
Money chases money. $150 to $1,500 bid/ask orders isn't big money to an M&M. We need a new larger audience to break that 2 cent top resistance. Or at least all the long & strongs selling, to come back at ASK only, until 2 cents is taken out. Then we'll see flippers and runs & retraces in a climbing price pattern.
Here's what the 245 board members should do to correct CDNL's price action problem; Not post more positive opinions. Buy back in; with what they are selling, at the ask tomorrow.
Said it before, say it again! (STARVE the bid / BUY the ask). The only way to get what you want. Higher prices.
Once 2 cents is gone, sentiment will pick up with price and new blood interest & larger bid/asks sizes will drive price. With M&Ms starting to chase money (volatility), instead of small volumes (stalling).
Build it and they will come. LOL Let's make a concerted effort to buy the ask, starve the bid and break the resistance.
Ps; I'm a swing trader, not day trader. I plan the trade and trade the plan. I don't sell out sooner or buy more during any play entered. Basically my plan is sell half at a double. To protect my original investment for possible re-investment. And take my loss at 50%. So I'm basically an innocent bystander until those points in my plan are reached.
