Bantek Inc (BANT)

[SeatonBM]

DRUS CHART/TA:

What a day, eh?

Were we red here? Sure!

Bad? Not necessarily... Nothing just moves straight up...

So... What did today's action tell me?

Not a ton - and a lot all at once... There is a lot to take in an analyze from different perspectives... It is so easy to look at a red candlestick and call it a bad day and get discouraged... But what really occurred???

Just the chart illustration below shows you that based on how crowded it is... I did my best to make it easier to understand...

Well... To begin with, I normally don't do this... But I encourage you to watch Clay Trader's video covering today's action...

https://claytrader.com/stock_chart/DRUS/?utm_source=social&utm_medium=twitter&utm_campaign=chart

Now I am not here to promote Clay, nor am I one of his mythological "goons" (that serious do not exist anyways)... But listen to what Clay says - and more importantly, listen to his attitude and "feelings" about the stock, calling out people for "being wolves in sheep's clothing", etc... His overall demeanor about this stock says it all... Does Clay seem like he is laughing at those freaking out, calling this a typical move in an everyday penny stock??? Doesn't he seem, dare I say... Bullish??? Compare this video to just about any other Clay Trader video he's made... Usually he sticks to the facts, tries to not lean one way or another in opinion... He just more or less states the obvious to someone with any level of knowledge in basic chart reading... But this video above seems like it contains something a little different... Like Clay couldn't hold back...

Clay by the way use the 30 minute intraday chart (which he states at the beginning of every video) when doing his video analysis of any stock... While I pay attention to all charts (1 minute, 5 minute, 15 minute, 30 minute, 60 minute, 4 hour, daily, weekly, sometimes others), I primarily work between the daily and weekly charts, and occasion pull info from the 30 minute chart, etc...

Anyways... Enough about Clay... Before people start making the inevitable wild accusations, let's move on...

So let's break down the chart for ourselves and do some deeper analysis...

It can be a little difficult to read into todays action indepth enough - BUT, here is what I see:

We AGAIN close above the 50 day Moving Average... IE support was AGAIN tested and it AGAIN held...

A key tool to reading a chart, whether you day trade, swing trade, or hold a long or short position... is understanding the important concept and principles of support and resistance... I CANNOT stress this enough... Support helps hold the price up as you already probably knew, and resistance acts against the price in holding it back from rising higher. Support and resistance can take shape any many forms, and not every single one has to do with a horizontal line at a single specific price on the chart along the way up or down, aka price action support/ resistance defined by a commonly visited price the chart interacts with, or a price high that must be broken to create yet a new high price (IE a bluesky break out)... Some support/ resistance points vary through time, such as following trendlines that can slant or slope as well (or just be horizontal as described above), or key moving averages that are defined by the price action through time averaged by the period interval over an expressed variable of time... A very important concept in understanding support and resistance is how the 2 convert back and forth, and the chart's general behavior as they do so... Places of support remain support until closed below - and places of resistance remain resistance until closed above... When closed below or above, they tentatively convert to the other... I say tentatively, because the theory might be they converted, but the reality is... Is that newly converted support point ACTUALLY acting as support??? Is that newly converted resistance point actually acting as resistance??? Who knows until it is tested??? Which is why generally speaking, more times then not, newly appointed points of support or resistance especially after being converted from the previous, often get tested right away, or not long afterwards... IE if the price closes above a resistance point, it tentatively becomes support, and will then soon after be tested to ensure the point is actually acting as support... If the test fails, that support point will not hold, the price will again immediately fall through it again, and it will remain an active point of resistance until the price can get back and close above it and pass the test... To pass the test, the price would hold support and would generally bounce off it on upwards usually.... Same is true in reverse when support gets converted to resistance... Doesn't matter if we are talking about a key revisted price point, trendline, moving average, etc... It all works the same general way...

So why did I spend so much time covering all that - to which most of you probably scanned with the feelings of "duh"... Because it is so basic... But that's why I covered it, that and it is directly brought to attention with the latest price action on the DRUS chart...

If you looke at the DRUS chart you'll note 2 days ago (on July 24th, 2018) we closed above the 50 day Moving Average... for a 2nd time in recent enough of history - the 1st time of which occurred July 2nd, 2018... You'll note both times as the price closed above the 50 day Moving Average from below it, tentatively converting if from resistance to support, the support was tested.... The first time the support failed to hold and the 50 day Moving Average then immediately returned to acting as resistance... The 2nd time it was loosly tested as resistance until broken through and closed above, then immediately support was tested the past 2 day (today and yesterday), where support passed thus far... Though the price did since fall again below the 50 day Moving Average, it closed each day above it.... To fail the test the price would have to close below it, and it failed to do so, IE test passed - thus far... I say thus far because it is still actively being tested... The price needs to pull away north from the 50 day Moving Average to really be deemed a passed test... But for now it is indeed acting as support as evident by the fact that the price has continued to close above the 50 day Moving Average.... Which means should the price start to go up from here, that 50 day Moving Average can be assumed to be a strong point of support going forward... Which would be bullish...

And that everyone is one of the most key things I can comment about on today's DRUS price action... So while the candlestick for today was colored red, there are still some bullish signals... Even bigger still, the 50 day Moving Average is showing support during record high volume - making it convincingly so...

Furthermore, the 20 day Moving Average is acting as support as well thus far since today the price experienced a low at the 20 day Moving Average and bounce off of it back upwards... You can see in recent days how the 20 day Moving Average was tested and acted as resistance and is now acting as support, and pasted a test today... All why the 20 day Moving Average is moving upwards and crossing through to above the 50 day Moving Average (a weak Golden Cross signal - bullish)...

So in studying the DRUS daily chart, you can make a bullish case given resistance was converted to support, tested, and thus far passing the test, meanwhile a golden cross is occurring....

The only concern is the candlestick lower wick was a little lower today than yesterday, showing that the bears had just a bit of extra strength today, though still failed to break support... I also don't like the downtrending 50 day Moving Average - but that'll reverse in time... Take time for the price each day to weight the average upwards, and the price needs to remain above the 50 day Moving Average to help convincingly help push it upwards...

What I also like is that there was a downward trending channel that the price followed and traded within up until July 2nd, 2018 when it busted momentarily out of the downtrending channel - and since has started to create what appears to be a new uptrend, IE a reversal... You can take all the price lows since July 2nd, 2018 and draw a line connecting them, and that line would trend upwards... You can kind of do the same for all the price highs as well... IT almost appears as if though the price is now following an uptrending channel... which I woud expect it to bounce up and down inside of, making the price low trendline the support line, and the price high trendline the resistance line... Which means there is a potential road map for flippers to follow, and for anyone to buy or sell within... The channel is again trending upwards, so this helps the bullish confidence...

The daily chart PSAR is at $0.02 as well - if the price hits that, this could take off fast...

(editing in some MA support test comparison charts of other stocks - 1 second - check back soon)

Here is the DRUS daily chart:


https://pbs.twimg.com/media/DjEalPLXsAEzRh3.jpg