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Bounced off the 4h bollinger bottom boundary and is now retesting the midline at .97, MACD on every chart from 1 min to 1 day is green. Volume was 27% compared to the 30-day average.
On the daily, today's candle stopped even with the 9 day moving average, coming from the bottom. Tomorrow and Friday are critical for this stock as it'll either cross above and build momentum or bounce down since the 9MA is resistance now.
A sustained run from here would confirm a double bottom and a longer term reversal. There was a huge volume uptick from .69 on what I'm still considering the dead cat bounce. IMO a sustained run would require new investment money and people willing to hold, which seems improbable given the dilution signals and lack of news catalyst.
Instead, indications are it'll bounce down because of the anomaly in Accumulation/Distribution which shows -2.61M at the low of .69 compared to -7.41M today at .95, this implies extreme shorting or dilution as many more shares have been let go while price has remained flat. (Supply and demand; supply greatly exceeds demand.)
GLTA
https://www.investopedia.com/terms/d/doublebottom.asp
Agreed, it's threatening breakdown on the bottom band of the hourly and 4h. Sometimes they bounce back the next day if the market rejects price going lower.
BUT:
Look at accumulation distribution in this hourly chart. No one's been accumulating, it's actually lower than AccDist at the previous low of .69 -- so, no support, looks like the bottom's about to fall out unless bulls pull off a surprise rally. One caveat is RSI's still in range to support a rally. (32 could be the bottom based on RSI higher lows.)
If it doesn't bounce tomorrow, it'll crash and eventually test the boundary of the bottom band on the daily. That's currently .09
Hourly chart, blue line is 200 MA
Well this took an interesting turn, some guy came in for 500 shares at .93 and somebody else pushed it to .97 for like 200 shares. Tiiiiiiinnnny volume but then other investors added more.
Look at RSI, fractals and AwesomeOscillator on the hourly. This is positioned for an entry signal per that strategy I talked about here. If I'm investing using that strategy + the hourly chart, I'm entering at any candle that closes above the red line on alligator and watching for breakout above the nearest upside fractal at 1.20 to confirm, mental stop loss at the green line around .94
Price is far below the 200-hour moving average, so it's not as good as a trade in a stock with healthy growth, but the idea is that if there's a breakout there'll be a temporary momentum swing that'll create a row of green ticks on Awesome Oscillator for at least a few hours since the chart is 'reset' to ticks near the AO zeroline and narrow fractals.
There's no guarantee how long a run would last and I'd have to do another analysis to figure out the profit targets based on the trading that's happened. Will save the work until an actual breakout. Volume before price, bears/diluters could just be out to lunch, lol.
GLTA
PS: Give this a read, and go make a 30 minute chart with the MACD study! Do you see a divergence? :) https://excellenceassured.com/8252/macd-bullish-bearish-divergence-price
Looks like the dilution will continue,
You can clearly see where they let up around the dead cat bounce to lure new bagholders. We'll probably see another dead cat bounce closer to a dime.
It's still in a position to u-turn and start another run, but with strong sell pressure and no news in the pipeline it's not looking good. The price holding steady while AccDist drops suggests the bottom will fall out soon.
I'm blaming FDVRF insiders for the dilution, but it could it also be MMs naked shorting this to heck! OTC is the wild west! :)
GLTA
Watching this tomorrow for start of possible run to 200h average at $2.50
9h MA is close to crossing 20h MA from below, then a potential cross of the 50h MA maybe Monday. RSI is squeezed, MACD half period (0.5h) is green, MACD full period (1h) is nearly at crossover, MACD double period (2h) is close enough for a quick crossover. Bollinger Bandwidth is very low with lots of headroom, so a new bear or bull trend could quickly gain strength.
If it runs, I expect it'll stall around $2.50 and get caught in that symmetric triangle, then come back down for either a breakdown or another bounce.
The chart setup looks good enough it could also go past $2.50, depending if it's already been bouncing in a symmetric triangle since 9/1 from the top left end of that redline. In that scenario, yesterday's low could have been inflection 4 of the usual 5, where 5 often breaks out of the triangle on the opposite side.
I tend to interpret it as first entering the triangle at the bottom redline, which counting the inflections would make the current one 3, a run to $2.50 #4, and a breakdown to $1.25 #5 for a bearish continuation breakdown into the lower pennies.
Either way, if it starts to run tomorrow it looks to be a decent swing trade! :) Thoughts?
Watching this for signs of life. Some interesting stuff happening now.
Fibonacci retracements show pullback to approx the 61.8%-78.6% levels where it's trying to find support. This is a little low but commonly you'll see support for another run form around 61.8% if it's gonna. https://www.investopedia.com/terms/f/fibonacciretracement.asp
You DO NOT want to rely on Fib Retracements alone because they are argued to be a numerical anomaly not grounded in logical proof. Nevertheless if other charting indicators agree, it can be a useful thing to watch for an upcoming momentum swing.
The other thing I put in the chart is volume profile showing daily sessions. Price is trading below VWAP (the pink line) and until it decidedly crosses over and stays over, the current trend stays bearish. In VolumeZoneOscillator, notice how far bears are willing to move (three zones!) off the zero and how consistent the selling level is. This screams that someone (company insiders?) is dragging this down with strong dilution or distribution. The gains are the market trying to breathe between the intensive selling. As soon as selling starts, it's a constant three levels out of zone, and as soon as it stops, bullish momentum starts to build, rinse repeat.
IMO whoever this is wants to manipulate price so the charts appeal to technical traders, to drive the stock higher so they can get price back up toward $5-7 or higher to continue picking the pockets of a new round of bagholders. If you can avoid being a bagholder you can potentially take advantage of a second run.
In that scenario there would be flippers with regular profit taking along the way as technical traders avoid being bagholders, so these runs would only last a couple days each before another pullback. If this goes into an up channel, it would bounce between higher highs and higher lows every week until the pattern breaks. Swing trader's dream. :)
I have the opposite problem of not knowing when to get out. XD Do you go by gut feel or look at something on the charts, or what?
I do most of my trading using moving average lines so I can try to gauge momentum. IMO it's the momentum swings that drive the price action, especially if you can catch the bottom of a downtrend (or if you're super lucky, the bottom of a breakdown like FDVRF on 9/16 which I totally missed, lol) I don't gamble with choppy trading; it's better to wait for stagnation or snipe the bottom of a downtrend.
Look up something called the Golden Cross https://www.investopedia.com/terms/g/goldencross.asp and Death Cross as the theory behind those chart events actually works for any pair of moving average lines!
So here's what I used to use with inline explanations. Sorry for the eyebleed pink. This strategy is valid but it's not as good as method 2 which I'll explain after. I highly recommend hopping on youtube to learn more about these indicators as they help double-check my method 2.
Method 2 is something I've been experimenting with more recently. It's been FANTASTIC for signalling breakouts but it's not so good at predicting trend strength. So I use it in combination with the earlier indicators to watch for breakouts in market sweet spots.
This strategy is based on this video that describes a clever way to use the Williams Alligator indicator to mitigate risk.
Charts and TA!
Let me know if yours agree!
I am kind of anticipating a sharp move higher in the morning. But not sure how long it'll last.
There is no known reason for this pump (besides naturally attempting to stabilize from the long breakdown shown in the blue area of RSI on the daily chart) and no changed company fundamentals - so logic says the stock should dump again when investors lose interest unless it's drastically oversold and just now correcting up to fair value. If it's true that insiders are diluting then this pump is most likely from them temporarily relaxing the sell pressure.
No kidding! The scale of this is super stretched since it's coming from the $40s. It feels like a mega-runner to folks who bought the bottom, but bagholders from the top are still down like 90%
Look at how long it was in breakdown on the daily. (Blue part of RSI) It's like a ball held underwater, it'll pop back up when the pressure's taken off. But imo this company's fundamentals are bad so I don't know why it would hold any of its gains in the long term.
If you're looking to enter, trade with caution as most of the market is red today. The bottom could fall out of this if buyers hold back.
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