CMG Holdings Group Inc (CMGO)

[coolnapz]

$CMGO pauses at February high, holds 200 DMA

Yesterday I wrote that $CMGO could clear the February high on a gap up. Obviously that did not happen, and given the 500% move off of the dead lows to the February high, it should not be a shock to anyone.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=75818974

However, I also said that the 200 DMA would be a good buying opportunity as per yesterday's close which confirms the breakout. As you can see today as some people locked in profits, and saw some shake out, that the 200 DMA was pierced but ultimately closed back at 2 cents.

Many of us here are bullish $CMGO, not only because of the 45% year over year revenue, the blue chip list of clients seen in XA, and the positive impact that will occur to net income once Audio Eye is spun off, but also the May 31st deadline for the Audio Eye dividend.

Nonetheless, a 500% gain is a 500% gain and I can't fault anyone for locking in some gains especially with the Memorial Day weekend upon us.

However, this will be a fantastic opportunity for those late to the party or those looking to add to their position to get in to $CMGO ahead of next week. Anyone who has had the fortune of being in on a rally knows that it never goes straight up in a vertical line. What usually happens is that there are bursts, retraces, followed by more bursts back up.

Heck, just take a look at the $CMGO chart from 2010. It took took 4 attempts to clear a nickel between April and October, but when it finally did it ripped to 10 cents, pulled back, ripped to 25 cents, pulled back, ripped to 30 cents, pulled, back and ripped back up to 35 cents.

The history of the stock suggests that pullbacks will be fantastic opportunities for those who understand that $CMGO has both fundamental catalysts and technical pattern that point to substantial upside.