Bemax Inc (BMXC)

[Dr PennyStock]

In 20 years I've noticed only a small problem a few years ago, and, now this, but, in this case of BMXC, I think that SC is right.

I explain why. As you can see on the chart below, on Wednesday we pulled back too much to .014, having even a small sell-off when it dropped fast to .014. This happens only when the stock touches a very strong resistance, like MA50 or MA200.

I was very surprised because I was not seeing any resistance that could have caused that. Tradingview was showing the MA50 at around .05 at the time, but, now I see that that pull back was caused by the MA50. You can see clearly that on the chart.

So I think that if SC is correct on the MA50, and, as per my personal experience of 20 years working with SC, they are very reliable, so I think that they are also showing the right RSI.

This doesn't change anything, because even if usually the RSI70 line is a strong resistance, we have lots of examples where it is easily broken, and, the stocks run for weeks on the overbought zone, above the 70 line. OWCP, ICNB and RMHB are just 3 examples of stocks that ran in the recent past for several days or weeks on the overbought zone, and, ICNB is still there.

So if a stock is strong, and, BMXC is for sure one of them, the RSI70 line will not be a problem.

http://stockcharts.com/h-sc/ui?s=BMXC&p=D&b=5&g=0&id=p68356508574