Minerco Inc (fka MINE)

[NRS]

Tech analysis for MINE 5/19/14

We hit the .011 - .012 band of support today, LOD @ .012. We were at this on 4 previous dates: 4/16, 4/14, 4/08 and again way back on 3/19 on our initial incline.

On 3/19, LOD = .0122, vol was 328M. The SP continued to ascend for 4 days.
On 4/14, volume was 54 million. The SP fell a little more the next day.

On 4/15, the SP hit LOD of .0085. Volume was 280 million, the Fast Stochastic (14,3) was at about 10 when the K crossed the D and the LOD drove down passed the lower Bollinger band. The candle for that day looked more like a spinning top then anything else, which would normally indicate indecision, but when added to the candle of the previous day it looks more like a hammer. (See Candle Chart Reading for reference: Blending Candles)

All of these signals, LOD crossed Lower BB, FS crossing at 10 and turning up, Hammer candle (blended) accompanied by strong volume took us into a reversal.

The next day, LOD was tested again @ .0116 after a gapped up open. Volume was 160M, a little over half of the day before, the reversal ran for 7 more days.

Today, there are several good indicators of a reversal. LOD crossed the lower BB, FS %K crossed %D @ about 6 the day before, and the candle is a nice hammer, even when blended with the candle from the day before AND the day before that. The Bears drove the price down in the morning and the Bulls fought hard to almost close green. The only thing missing is massive volume.

Other interesting stats: During the initial run up, starting when the SP really started to take off (3/17-3/25), over 2.2 billion shares traded within a 4 cent range (.005 - .045). During this last 9 day run (4/15 – 4/28), the volume was only about 1.2 billion during its 3 cent range with about 30% of it trading on the first day. So it’s definitely looking like it’s not taking nearly as much volume to keep the price up.

The last time we had this much volume was on 5/8, the fourth day of a price decline. It hit 180M, over twice the volume of the day before. During the next few days the SP bumped up a little but stayed around .023 before starting into its current decline.

MINE broke through the .015-.0153 band of resistance (established by LODs 4/7, 4/10, 5/16) and closed today at .0156. Hopefully this band will now act as support. The next level of resistance is .0161-.0164. (established by LODs 5/8, 5/9) MINE’s HOD of .0163 today got well into this range but got pushed back down a little, but stayed above the support level mentioned earlier. The next level of resistance, set by 2 dates, is .0179-.018. But the mother of resistance is the .021 - .022 range, as this range acted as either resistance or support for 7 trading from the last few weeks.

I suppose I can make an “educated” guess to what I think will happen as far as ranges well see in the next few days. I got really close on my last one, just a few posts ago and easy to find if you go to my posts for this board. I mean really, I almost nailed it, but for different reasons. Last week I predicted the price would eventually have to cross the lower BB, which it did today, before we’d see a reversal.

This brings another thing I want to point out about the chart that I recently noticed (10 minutes ago). Look at a daily chart and follow me on this. On 4/1, the price started a slow, steady decline. Volume had dropped way off from recent days. It wasn’t until the 5th day of the decline that it took a harder dive, and on much more volume. Then it bounced on 4/8, peaked on 4/10 and fell some more until it bottomed on 4/15. From 4/1-15, from the HOD to the LOD, the price fell 3 cents across 11 trading days, for an average of just under .003/day. Now every MM and flipper in the world is hep to MINE. Now look at 4/29! After a 9 day run, 312million shares traded across a H & L of the day of over a one and a half cents. It corrected a little on 5/1 then went into a gradual decline. From 5/1 – Today, there is, from 5/1’s HOD to today’s LOD, only .0164 cents difference across 13 trading days, or .0012 cents per day. I think this last decline was just too gradual to cause a strong bounce or reversal.

Without news, and being our friend Mr. Rotondo said on today’s post #149448 that there will be no news this week, I think in the next day or so, we’ll see a HOD of the next resistance around .018, but by Friday we’ll be testing .011-2 again and we’ll see a LOD somewhere just below a penny, around .0088 (support established on 4/15) or so. We won’t stay there and we’ll recover. But without news, and without all of us getting out and telling our friends about MINE (which I don’t particularly recommend) then there’s no gas to increase the SP any higher than it’s been.

But when news does come out, and if it’s what I think it will be, then we’ll make what FRTD did today look like an eviction. I guess I could have stated all this at the beginning by simply saying: “I think it’s a gonna go up, then it’s a gonna go down!” and by doing so would have saved you lots of reading, but now you know I at least put a few hours of thought into this. Good luck, have a great evening, see you tomorrow. BTW, everything I learned about TA i got from just watching the Claytrader these last few weeks. It seems pretty easy actually once you get the hang of it.