as mentions in last weeks post, i said this would pullback to .018 and close at .02. This was based on TA and the many Intra day charting patterns. When trading a story apposed to TA its easy to get caught buying and holding a loss very quickly and some traders would have got caught last week. First off the trend is falling short. This is normal with a significant run and when emotion comer in to play. Now the the stock is in a sideways trend and last weeks performance solidified this pattern. Keep in mind last weeks move for 017 to .027 was a technical bounce off the top from the previous week, pulling back almost 50% which is a day trading rule,buy the 50% haircut and sell the top which was very clear as we saw the large volume day come on the top of that bounce on Thursday and drawing in sentiment chasers now sitting at a loss. As we saw when the bid was @025 sellers losing fate wanted out. The MM's were playing with people. In order for trend to be in tack there needs to be certain criteria and LOTE lacks this at this point. For a play to maintain trend the PPS must in fact ride the top band, not above of below and last week proved the top band was used to trigger sellers buying the bounce. There's are lots of TA indicators turning to a bearish sign. Trading story is tricky when all is speculation and last week proved the sentiment is losing interest hence the lack of volume, sentiment brings volume so its clear is losing ground which is why this stock is ready to pull back. Also keep in mind a lot of story board players have left the trade as they stopped the chat as of Thursday and some are writing as much as possible to keep the stock on certain boards like breakout boards to attract attention. Newbie Story boards stock buyers need to see this to give them confidence as this is the only way they know how to trade as the more experienced traders sell into the chatter. Watch for a support of .018 to give out into next week. Remember traders will create support to create illusion but the truth is MM NITE was hiding his ask, this is more profound then the fake bid support. After considerable selling its pretty safe for a trader to come in with a larger bid to to get peeps to yell,"bid support in" this is very common in the OTC. So to wrap it up without transparency regarding story, LOTE will drift back down as MM's look for buyers holding the price up before the decline.
GLTA
trendtrader2106
AI
