**UPDATED TECHNICAL ANALYSIS 12/5/16**
TO START WITH A FEW STATS: 277,000 dollar volume. 463 trades. This is insane people, this was a ridiculous amount of buying today. Buy Volume : 162 million. Sell Volume: 55 million. This means ask slapping all day.
Chart: The chart looks beautiful period, showing the strength of this star step pattern. I prefer to use 5 day 30 minute intraday charts on stocks like this and the two important factors I like to watch are the RSI as always and SMA 8 for penny stocks. In this case we have a 73 RSI which can be deemed as a power zone area giving us room to reach the .0018-.002 area. The SMA 8 sits at .0014 which makes sense as that is where our strength/support was the majority of the afternoon with the over 30 mil bid support. Also keep in mind what I'm looking at is .0014 being the bottom of the current price channel we are in.
Price channels: The established price channel we are currently in is the .0014-.0016 channel. If we break the 16 area thats where I believe we can reach the 18-.002 area. 16 breaks watch for another chase basically. Like I said earlier to MOMO today is the result of a price channel being overcrowded/overtraded it created another springboard. This is because we had over 240 million last week traded between .0011-.0014 which set us up for today.
Volume in correlation with these price channels: I was not surprised to see this huge north break today as stated above with the overtraded channel causing a spring. The main channel I want to speak on is the .0014-.0016 channel which besides a few small bid whacks on 12/13 had approximately 93 million traded in this 14-16 channel which gives you a strong idea of how much support was built in this area.
For Tomorrow: Based off my visual today on chart, L2, price channels etc it was an amazing day to say the least. We have a ton of support at .0014 around 30 million virtually all afternoon. My take is if that is there tomorrow we continue north. 15 fell a couple times and remained thin. So as a whole if we maintain this channel/support tomorrow we should break 16 early and test the new channel of 18-.002. In the longer term then just tomorrow though we break .002 very soon and very very possible as soon as tomorrow, especially with all we have in the pipeline. This is just technicals alone and doesn't include updates, going current, news etc.
As always ask Questions!!
Best regards,
Sunny$$
Always consult an Investment Professional, my posts are my own opinions, and not for investing decisions
