AI
Friday, August 18, 2017 2:56:17 PM
INMG chart
3 month daily. not hard to read the story. a look at the pattern, a series of waves -- cup rolls, i call them -- where the stock ebbs and flows. nothing unusual about it. it is the current history of the stock. the proof is there, right in front of your eyes. the technicalities, the moving averages and indicators give depth to the story.
so what do they say?
if you where to draw lines and look for a common top or bottom, support/resistance, you'd find that .014 and .017ish come up more than once. fact is, stock just moved up from that .0088 bottom roll without ever stopping long enough to build a base. and the 5 and 10 ma's are too fast to offer strong support. the 5ma in particular can be prone to whiplash. so when the stock overheated -- the rsi14 was over 80 and the rsi6 was over 90 -- the stock had nowhere to stop on its retracement path.
charts don't tell who is going to do what, they simply refer to the history as a basis and extrapolate that someone will trade. after all, isn't that what the stock is for. this chart was screaming, slow down. and that's what it did. and this is healthy.
a stock that runs away and goes up an elevator comes down even faster, especially when gravity takes hold. this retracement was a liile more pronounced than usual, but that's because the run was premature. there has not been enough volume and layering of support points. don't believe me? look at the steepness and uniformity of the indicators. they have all turned southward. which, btw, does not mean this is headed to the bottom. there's strong support here around .012 with both the 50 and 100ma's. there's also a triple top that was in place at .014. that can be a floor. just because a stock breaks a ceiling, a floor is not automatically put in place. it needs to be nailed down. anyone see a hammer at work on the run from .0088?
though nothing prognosticated is ever etched in stone, there's a good likelihood that this is a relative bottom for INMG. of course, for it to move up its going to need to hold .014 and break past the dampening 20ma line, currently at .0157. and it will prolly then have to test .017. the volume will determine the issue.
3 month daily. not hard to read the story. a look at the pattern, a series of waves -- cup rolls, i call them -- where the stock ebbs and flows. nothing unusual about it. it is the current history of the stock. the proof is there, right in front of your eyes. the technicalities, the moving averages and indicators give depth to the story.
so what do they say?
if you where to draw lines and look for a common top or bottom, support/resistance, you'd find that .014 and .017ish come up more than once. fact is, stock just moved up from that .0088 bottom roll without ever stopping long enough to build a base. and the 5 and 10 ma's are too fast to offer strong support. the 5ma in particular can be prone to whiplash. so when the stock overheated -- the rsi14 was over 80 and the rsi6 was over 90 -- the stock had nowhere to stop on its retracement path.
charts don't tell who is going to do what, they simply refer to the history as a basis and extrapolate that someone will trade. after all, isn't that what the stock is for. this chart was screaming, slow down. and that's what it did. and this is healthy.
a stock that runs away and goes up an elevator comes down even faster, especially when gravity takes hold. this retracement was a liile more pronounced than usual, but that's because the run was premature. there has not been enough volume and layering of support points. don't believe me? look at the steepness and uniformity of the indicators. they have all turned southward. which, btw, does not mean this is headed to the bottom. there's strong support here around .012 with both the 50 and 100ma's. there's also a triple top that was in place at .014. that can be a floor. just because a stock breaks a ceiling, a floor is not automatically put in place. it needs to be nailed down. anyone see a hammer at work on the run from .0088?
though nothing prognosticated is ever etched in stone, there's a good likelihood that this is a relative bottom for INMG. of course, for it to move up its going to need to hold .014 and break past the dampening 20ma line, currently at .0157. and it will prolly then have to test .017. the volume will determine the issue.
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