Back on 8/1 we had a gap up from 2.56 to 3.15. That was a bullish signal, and confirmation came with the piercing pattern formed between 8/2 and 8/3. then it went up to 3.9, an increase of almost 80 cents.

Now it is normal that people would start selling at this point, easy profits. So it will go down to the gap, which becomes now support. Moreover, the price caught quite a bit of air above the sma20 on 8/12, so it was expected to come down.

So I expect a turnaround at the gap level (around $ 3), we already have 4 red candles in a row, 5 if you count the doji, it's time for a reversal.

I would say, wait until tomorrow (8/20) and if we get a green candle forming a piercing pattern with today's candle, it's time to enter. Watch that volume, it's picking up, more than double since yesterday. If things go by the book, in a few days it could go back up to 3.8, then maybe people will start selling again.

At least that's what I can read from this chart, if my understanding of candle charts is correct.

I have also been watching this for a while now trying to find an insert point.


The company has an August date quarterly release, maybe everybody is waiting to see that happening before making up their mind to buy or sell.