NanoViricides Inc. (NNVC)

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A FAILED TECHNICAL PATTERN IS ONE OF THE MOST POTENT SIGNALS

When a technical pattern fails, that turns out to be one of the strongest signals for a move in the opposite direction to the original signal.

Here is an example with NNVC. Since the high at $3.44 in on 3/22/16, until the 23rd of May the stock has remained below fa falling trend line. Said differently, the stock has been in a short-term down trend. On May 5th the stock began holding at at support zone (1.50-1.60). Today's price range decisively broke above the falling trend line. That is a bullish signal, albeit an initial one. A more convincing signal would be a close above 1.75.

Now here is the potential Failed Signal ( FOBO aks Fake-Out-Break-Out). If NNVC were to now fall back below the trendline it broke above on the 23rd and then close below support (< 1.45) that would be a very potent sell signal.

In my posts I always try to given triggering levels. A close below 1.45 would be a triggering level to sell longs in anticipation of an extended move down, most likely below 1.00. A close above 1.75 would negate that scenario and call for a move to 2.50 or above.

Hope you find this useful.

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