US Stem Cell Inc (USRM)

[NoMoDo]

Charts work just fine. They are a visual representation of what HAS ALREADY happened. Think of it as the emotion of the collective stock holders, traders, shorters, accumulators... A chartist should also watch level 2 to get the full picture (and any other outside factor such as news).

Here we have either a newbie trying to sell his position (not likely), or a manipulator offering $36k worth of stock at just above the ask. If the daily volume is a couple mil and you put up a milly on the ask, you are creating an effective wall - until someone starts nibbling away at the wall.

I would also guess that he is controlling more than one MM. What I mean by that is some brokerage accounts allow you to pick the MM to place your order. He is likely offering the mil shares as well as the small ask right above it. Notice how the mil offer is usually the second best offer. That is done to protect him from having someone take him out. To me, it is a sign of weakness as he drops his ask. A few times yesterday, the ask got taken out and the milly shares moved to .039.

I personally would wait until he drops it to .035 before hitting the milly. He will likely push it to that level. At that point, he would be challenging a point of resistance. The next point of resistance is .0329. As I said before, it can go below a point of resistance (just as it broke above the .05 200dma), but at the close of the day, you want it to be above the 50dma to keep control.