Jones Soda (JSDA)

[Chart Addict]

JSDA - The technicals - May 25, 2016.

Let's begin with the big picture, as presented on a weekly. Everyone has an opinion on what set of rules to apply when drawing a trendline. The problem is, everyone seems to have a set of rules that differs from that of everyone else who has written a book and addressed the subject. (Give ten trendline traders a printout of the same chart, a ruler, and a colored pencil, and I'll bet you dollars to doughnuts at your local 7-11 that you'll wind up with ten differing trendlines, with each trader fully expecting an A+ for his or her efforts).

My ruleset for trendlines is rather simple. I try to draw the line that connects the most points possible, while ending in a point of clear significance. That point of significance may be a key area of congestion, or, better yet, it may be the point at which the stock has clearly reversed its trend. I know that my line is correctly drawn when it - well - looks right. Does the red line I've drawn highlighting the downtrend look right to you? Does it look like it lands in the right place? It does to me.



Above I have highlighted those areas where support and resistance are clearly defined by the specimen under review. JSDA is somewhat unique isasmuch as these areas would appear to by highly predictive of short-term turnabouts. This is particularly so when they hold on support or under resistance for more than two week-long sessions.

Note the launchpad that was being constructed from about early October of 2015, through early this year. That's what I would consider to be a very significant platform, with several weekly sessions holding firm - right to the last penny - on support. I have highlighted this area with a blue line.

We arrive at the daily chart, where I have highlighted in blue the significant areas of support and resistance exceeding two sessions. As you can see, and at the risk of sounding somewhat repetitious, JSDA is unique isasmuch as these areas would appear to by highly predictive of short-term turnabouts. This would appear to be the case more so when the stock is in an uptrend, as opposed to a downtrend.



The range-bound trading in this security is particularly striking when viewed on the lower times frames. Below is the last three days of market action, with each bar representing one hour of trading. Clearly both the buyers and the sellers have firm convictions about the level at which they are willing to conduct their transactions. I strongly suspect that much of this comes about as a result of the thin trading.



I'm very much enjoying the "decoding" of this stock's trading patterns. I find them to be both sublime and subtle - not unlike the products behind the ticker.