Telkonet Inc (fka TKO)

[PhillyPA65]

HUEFLIER

I've been watching day traders and how they read the market. Fibonacci pullbacks occur almost like clockwork. There are always exceptions, but once the buying pressure lets up, people start taking profits and support is typically at the Fibonacci support levels (38% or 50% pullback) of the current move. That's where buyers/traders sit and wait to buy. MM has no choice but to take the price down if there are no buyers.

I can only tell you what will happen after the move occurs. Resistance is currently $3. Support is 2.55 (50 day moving avg) and 2.78 (20 day moving avg). Go to www.stockcharts.com or look at this example http://stockcharts.com/gallery/?tko for technical analysis. It does work but the company still needs to grow sales/profits and release great news for stocks to go up. TA tells you where the TA investors/traders will be buying or selling so you can take advantage of the resistance and support levels. It's more difficult if the daily volume is low since it would be harder to buy and sell shares.

Check out "Chart School" http://stockcharts.com/education/

It has taken me a while to get savvy on this stuff but it's really not very complicated. Drawing trendlines is another simple thing to do to determine support and resistance.

The pivot point for tomorrow is 2.88. Let's see if share price stays above that. We may see trading between 2.72 and 3.11 if traders are using pivot points. I don't think so but let's see what happens tomorrow. Price may go up again if there is buying pressure and pullback according to the Fibonacci numbers.

Tony

Tony