Hi thanks. Make no mistake, Monday will be very pivotal for this stock on determining both direction and price points. There are two distinct scenarios here...
1) Several people will take advantage of the huge and very healthy consolidation that took place this week (reset of RSI to 60) and choose to add large quantities now the price has found a little support in the high .02s. This will essentially create the next leg which we've all been waiting for patiently.
2) A few may choose to see if they can break the aforementioned support that did form in order to pick up new cheap shares. (not likely since they spent quite a bit getting it down in the first place)
Considering I know several people who have been chomping at the bit for this tickers RSI to fully reset to sub 70 (some were hoping 50), I believe it will be scenario 1.
Additionally, I believe a break of .05 will bring in a considerable amount of new investors who both look at stocks that trade above .05, but also have a considerable more amount of money to play with (not to be confused with typical OTC players). The news was huge Friday and a monumental step forward considering the method of monetization for the company. This new money combined with the higher price point operating above fresh support indicates huge potential jumps here which will likely continue the momentum higher in healthy leaps with "scheduled consolidation" happening at each leg.
A look at the chart shows a strong hammer candle (a green or red color doesn't matter necessarily in this case). The strength of the candle is shown in the amount of the bounce (length of the leg) off the bottom. One can easily see it bounced quite hard which shows the bulls taking control firmly. This suggests the likelihood of returning to the same price point as unlikely. If in the event it does occur, the previous day candles will support a mid term downtrend. Its also important to note the way the stock was manipulated down is the most important indicator of the next direction (up). i.e. small lot sells followed by large buys at much lower price points. Also, don't disregard the new MM's that have shown up and are playing in the party. Some are overseas MM's.
The combination of a green Friday candle, length of the bounce off bottom and historical data related to volume and the timing of where the huge volume occurred in coordination with previous candles indicates to me this thing starts the next leg up, incurring resistance somewhere around .075-.085...Given the history of the chart, I'd suspect that resistance will be very light...I'm holding my core strong regardless but will begin to sell shares at intervals starting at .15+ and above.
Regards,
SOG
AI
