Friday was 2 weeks and a day since I wrote this...post #4785...
Looking at the 52 week chart again, I believe that we will see the 50 day move back below the 200 because the 50 day period will soon be dropping the days of the jump in PPS (Nov 17-21), causing a lower average price. I am watching to see how long it holds in this range (1.75-2.00). Maybe 2 weeks but I am expecting a drop if no (positive)news or PR is released, could be back to 1.00-1.20 soon. Soon the 10 day will be below the 50 day which will be below the 200. That tells me a drop is coming. Also watching RSI-14 again for oversold.
So, where do we stand now? In my right on schedule. The range held for the 2 weeks now looks to be breaking below. In my opinion we still look to be following the previous pattern, set Apr-May of '17, on the 52 week chart. Judging from today's close 1.73 (I actually don't count that last trade squeezed in so I say 1.70-1.71), the daily chart pattern and the repeated touching of 1.70 after failed attempts to move up, that suggests to me that it wants to go lower. Next support (pretty thin) is at 1.40-1.60 before heading back to 1.00-1.20.
Without news or some change in earnings since the preliminary results I think we see that lower range. As P/S drops, charts will become self-fulfilling until we hit that strong support level between 1.00 and 1.20. I believe the drop will coincide with the turn downward of the 50 DMA when the high closing days start dropping out. The RSI 14 will probably indicate oversold at that level as well. At that point more money will come back in to the stock and big investors already in will be sure to take advantage of the "sale price merchandise" and scoop up more shares. Then the rebound begins. If you are thinking about buying, I don't think there would be a better time than that.
With each double digit point drop it gets harder for me to stay patient. I have a buy order already in and waiting to be triggered at a lower level.
That's my take.
