The stock is very thinly traded and there hasn't been any bad news yet. A trend which I hope keeps going, for I am a long term shareholder too. Thankfully math is unbiased if you let it be, and can be used to increase your long term holdings.
Like I said, charting doesn't really mean squat for a thinly traded stock in a 4 month timeframe, the potential for extreme volatility is to great, hence the placement of the lower resistance line. But it does give decent reference when you have a sudden rush of new blood, especially the pump and dumpers who will be looking at the same chart.
But I wouldn't disregard the lower trend line if the worm turns, especially since your reference point is only last November, the short term momo traders sure won't. Not like it matters to the buy and hold investors but it would provide a good entry point to buy a dip if the news wasn't catastrophic.
Here are my replies to your numbered statements:
1) Lower share price does not imply dilution, just a function of demand. My assumption is zero dilution. Dilution is a completely different animal and likes to eat you slowly...and painfully. However you should note that the price retraced much of it's gains on 2/27 and dropped from around .13 to the upper .06 range before recovering. A retracement is still a retracement even if it happens in a matter of minutes instead of days, it still counts as a data point. Did I mention that this is a volatile stock? I trade currencies, now that's fun.
2) Market caps are tied to share prices, that is correct. Small, volatile stocks have a wide range of market caps regardless of individual preference. We dropped rapidly in market cap on 2/27 from around $25M to around $10-11M prior to recovery, we sit around $18.6M today.
3) RSI is a function of momentum in price changes, not the price itself. It's possible to have a decreasing share price and a fairly neutral RSI(dilution, slow drift,etc), not likely with a volatile stock like this though. We haven't had any bad news or major selloffs, just drifting toward the mean after a spike, so it makes sense that you wouldn't see an oversold RSI over the past few months or from your red line.
4) Horizontal pivot points(R2, R1, P, S1, S2) are not artwork but a visual representation of a mathematical equation that stockcharts thankfully will do for me. That's why I pointed out that the drawn in trend lines do cross a point in time that was obtained by an independent and unbiased mathematical model. I thought that would be a significant observation to those who where unfamiliar to charting and hoping to learn. I should have described what the horizontal pivot points represented in my first post, I apologize for that.
At the close I see that we are still creeping up the center trend line and the MACD 12 is starting to turn positive. A MACD cross is considered one of the many "buy" data points being scanned by the algos. Hopefully we'll start to see some fresh blood come in again then. Once we break .16(R1) we're off to the races!
Good luck everyone.