Shareholders were hungering for any bit of hope that this company was doing anything to benefit them. The PR gave this to them....at least for the time being.
As far as an entry point, there are a couple things to keep in mind. First there is massive resistance up at .06. It has been an area of support a couple months before the collapse.........it is approximately where we were when the share price did collapse (I'll explain this below)......and it is currently where the falling 50day MA is looming....which historically has been stubborn resistance for this stock.
Now some ppl may be saying..."well, rule, you said the 10day was stubborn as well". And it was...until the PR came out. Once news hits technicals take a back seat......but only temporarily. As the news gets absorbed, the technicals will once again take over here.
.06 signifies where this stock was before the collapse....and is where many would be happy to 'get their money back' from that painful day......especially since when the results come back, the SAME thing could and would happen if they are just as disappointing. So some ppl may be looking to sell at this point, and others are less likely to buy the higher that this goes....since the same thing could happen again in just a few weeks. Thus, the strong resistance at .06 (or upper .05s).
So IMO if you are afraid of missing this running away on you too far....just watch that .06 resistance level. If she CLOSES above that...then we may have a new batch of (unfamiliar) investors in KATX. If not, then I'm quite sure you will see a more attractive buy-in price before long.
Personally, as technical trader, I will most likely be unwilling to buy into this to hold for assay results. I don't need that kind of risk. I'd rather chase and pay a little more for a somewhat 'guaranteed' profit (if great results come out) since I'm sure this would be running for days...even weeks. What difference will waiting 15 mins to buy make?? (or even less if I happened to be home at my computer)?? And this will limit my downside risk considerably.
Hope this puts some things into perpective for those unsure of what they should do. All MO of course .......rule
If we lose freedom here, there's no place to escape to...this is the last stand on earth. (America)
