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Wednesday, June 15, 2016 9:55:41 AM
PGEI is the new gem of the OTC
I mentioned a while back that ProGreen (PGEI) is my new "gem" stock, and that I have another that I bought from September through February that I am still holding - one of the best stocks on the OTCBB, as far as I'm concerned.
It's uncanny, the parallels between the two. Both stocks had a very significant stimulus for substantial gains in a recovery pattern. Both stocks have gone through the same gain stages and, if you refer to the two charts below, you can see the triple golden crosses.
The chart patterns are remarkably similar, but the time scale is wider on the upper PGEI chart (not available on StockCharts, had to use Scottrade charting and more limited for zooming).
The crosses are in the same order: 1st the 50-100, 2nd the 50-200, and 3rd the 100-200. Of course this is the case because this can only happen when a stock is fundamentally solid, sees higher highs and higher lows... and holds the higher highs. Trash stocks do not behave this way, mostly because they take a dive well before they next cross can occur (and you get the reverse - a "death cross" - where the shorter period moving average crosses back over the longer one).
In fact, what occurs at some point is a consolidation period (see the triangles).
The second part of this is that both stocks went into a consolidation at the lip of a "cup" and then formed a "handle" for the cup-and-handle continuation pattern. This is where the price recovers (right lip of cup) to a level of significant prior resistance (left lip of the cup) and consolidates with a pull-back of up to 30% of the "cup gain" before beginning to rise again (completing the handle) for a continuation run-up.
The cup-and-handle continuation pattern is fundamentally sound, and was discovered by Bill O'Neill (editor-in-chief of Investors Business Daily) in the 1980's.
I called out this pattern before it occurred for this other stock. As you can see in the bottom chart, it followed the continuation perfectly as predicted.
With very good fundamentals and being significantly undervalued with a market cap of ~1.7M and 0 toxic debt, PGEI is set to follow this continuation.
For more info on the cup-and-handle chart pattern, watch this video:
(if you watch/listen to nothing else in this short video, be sure to listen to the 1-minute portion starting at 3:45 - the "Buffalo Theory" explains a lot)
I mentioned a while back that ProGreen (PGEI) is my new "gem" stock, and that I have another that I bought from September through February that I am still holding - one of the best stocks on the OTCBB, as far as I'm concerned.
It's uncanny, the parallels between the two. Both stocks had a very significant stimulus for substantial gains in a recovery pattern. Both stocks have gone through the same gain stages and, if you refer to the two charts below, you can see the triple golden crosses.
The chart patterns are remarkably similar, but the time scale is wider on the upper PGEI chart (not available on StockCharts, had to use Scottrade charting and more limited for zooming).
The crosses are in the same order: 1st the 50-100, 2nd the 50-200, and 3rd the 100-200. Of course this is the case because this can only happen when a stock is fundamentally solid, sees higher highs and higher lows... and holds the higher highs. Trash stocks do not behave this way, mostly because they take a dive well before they next cross can occur (and you get the reverse - a "death cross" - where the shorter period moving average crosses back over the longer one).
In fact, what occurs at some point is a consolidation period (see the triangles).
The second part of this is that both stocks went into a consolidation at the lip of a "cup" and then formed a "handle" for the cup-and-handle continuation pattern. This is where the price recovers (right lip of cup) to a level of significant prior resistance (left lip of the cup) and consolidates with a pull-back of up to 30% of the "cup gain" before beginning to rise again (completing the handle) for a continuation run-up.
The cup-and-handle continuation pattern is fundamentally sound, and was discovered by Bill O'Neill (editor-in-chief of Investors Business Daily) in the 1980's.
I called out this pattern before it occurred for this other stock. As you can see in the bottom chart, it followed the continuation perfectly as predicted.
With very good fundamentals and being significantly undervalued with a market cap of ~1.7M and 0 toxic debt, PGEI is set to follow this continuation.
For more info on the cup-and-handle chart pattern, watch this video:
(if you watch/listen to nothing else in this short video, be sure to listen to the 1-minute portion starting at 3:45 - the "Buffalo Theory" explains a lot)
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