US Stem Cell Inc (USRM)

[NoMoDo]

For those who don't follow charts or believe that they don't work well with pennies, here is how I see things... We went from .002 to .17, but only formed one base (at .02). As a general rule, that is a very dangerous position to hold regardless of the company.

Right now we are in a completely different position where bases have been formed in 3 places. The first one was at about .0185 (oversold from the .02 previous base). The second one was .0255ish (stairstepping bases is a positive sign of strength - where I started getting in). The third is forming at the base of a flag or pennant. The really good part is the flagpole is almost a 50% increase from the previous base.

Going forward, the first resistance is the 200dma (about .051). The 200 has been tested 3 times so far and broke through 2 of the 3 times. That is a good sign that we will fairly easily break through and form a base above this level soon. Any resistance from that point is weak. This could indicate a huge breakout. At this point, watch volume and look for a base to form.