Friday, July 29, 2011 12:20:58 PM
Johnny4profits asked me if I would comment on the STAU chart from a purely technical point of view. I have not looked at this company from a fundamental or substance point of view only what I see happening on the chart in terms of a technical analysis.
What appears to be happening here is that traders are accumulating this stock. When that happens, a strong base of support forms on the chart. You can see how anytime the price has fallen below $0.0003 it was purchased aggressively and closed that day at $0.003 or higher. There also appears to be profit taking above $0.0006. So, the strategy is that you buy 1,000,000 shares as cheaply as you can and then you sell off enough shares to get back your original investment around $0.0006 and keep the rest of the shares as a FREE trade. You keep doing that as long as you can and accumulate as many FREE shares as you can until this market rallies on significant BULLISH news. Then, when the stock becomes overbought you take a huge profit having experienced a very minimal risk along the way. Here is the chart! You can observe the chart and draw your own conclusions.
STAU - Weekly Candlesticks
What appears to be happening here is that traders are accumulating this stock. When that happens, a strong base of support forms on the chart. You can see how anytime the price has fallen below $0.0003 it was purchased aggressively and closed that day at $0.003 or higher. There also appears to be profit taking above $0.0006. So, the strategy is that you buy 1,000,000 shares as cheaply as you can and then you sell off enough shares to get back your original investment around $0.0006 and keep the rest of the shares as a FREE trade. You keep doing that as long as you can and accumulate as many FREE shares as you can until this market rallies on significant BULLISH news. Then, when the stock becomes overbought you take a huge profit having experienced a very minimal risk along the way. Here is the chart! You can observe the chart and draw your own conclusions.
STAU - Weekly Candlesticks
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