AI
Friday, June 14, 2019 8:55:36 PM
Little Friday “T&A” for you guys… 
Come one now, TECHNICAL ANALYSIS!!!
Like I said in previous posts, I can’t help but see patterns with my trading and experience. This is a little long, though thorough and interesting (says me at least!!) so read as much as you like!
I wrote the other day that the 3 long “green” candles through the .80 cent level might be a “blow off top” ripe for a pullback and, indeed, it appears that we have pulled in from those higher and higher highs days above 1.20 which equated to a 50+% percent gain through that .80 level. I explained that the blow off top may not be sustainable, hence the pullback and explained that this is *healthy* as you do not want a straight-up-and-up scenario.
I drew some channels and breakout levels on the chart below…all a decent amount of consolidation and bullish setups through highs and continuing higher.
I also noted some specific candles and their corresponding volume and I’ll make some comments, some in hindsight and some forward-thinking. I apologize in advance that I may not know the specific dates as I’m just eyeing the chart below and the volume for a given day…
So, in hindsight…
The candle around April 25th or so (the first volume bar I note on the left) where the tail of the candle pierced below the .28 level or so. That candle is a “hammer” and a bullish signal, especially when emphasized with volume which was the case having traded near 300,000 shares that day.
The next volume day that I noted corresponds to a strong bullish candle pushing the stock not only above over 2 trading weeks (12 days) of resistance at .40. Note the volume on this day again approaching 300,000 shares. If you bought through the .40 level on this day, you rode a bullish candle above .50 and *never looked back*. If you had, for example, your initial mass of a position from .05 or .10 or wherever below, you could hold and trade around that position, buying through .40 and selling .80 and then 1.20 for a 1X and 2X return….just gravy for fun!!…while still holding your initial position!!
The next noted volume bar is through what looks like the ~.65 level on June 3. Decent volume through here and if you bought .65, you haven’t looked back from this level and saw almost a 1X gain through the next 6 trading days.
From June 3 to June 6 we have a *real nice* bullish triangle pattern with *clear* resistance through .80. Again, buying through this level and 3 days later you’re selling for a 50% profit!!
*NOTE HOWEVER* the volume on the breakout through .80 on June 7. You want to see *much higher than average volume* to confirm a breakout through that type of triangle pattern set up. Look at the volume…not even 100,000 shares…just, perhaps, “average.” Not what you want to see. That low-volume breakout, coupled with the higher and higher highs through 1.20 carries a bit of caution and suggests the “blow off top” that I mentioned previously. After the 52 week highs of 1.23, we gap down and don’t trade to the 1.23 highs. Instead, we have our first bearish candle in perhaps *3 weeks* and…look at the volume on this down day…over 200,000. Probably “penny people” taking some profits or trading around their position. Someone also noted that we filled the gap down to the .90 or .91 high of the candle 3 days before (the day of the initial breakout through .80).
The last two candles should just be a single candle. For some reason, charting programs I have used will double-print a Friday candle for some reason, removing it at the open on Monday. This day started bearish with the high of the day below the close of the day before. The volume, though “OK-ish” was nothing particularly strong. This perhaps signals not a sell off in days to come, perhaps a start of some health consolidation.
Going forward…
It appears that the breakout through .80 on low volume and setting up a bit of a blowoff top foreshadowed a selloff and pullback which we are currently experiencing. As we are not approaching heavy volume…say, 300,000 or more…it appears for now that this is just an expected, healthy pullback and, hopefully, the start of some consolidation for a move higher. Levels of support should be .80 and even down to .65 would still confirm the overall bullish uptrending channel shown by the red lines on the top of the channel starting back in March around .28 price, touching the high around April 10 and the bottom of the channel with the “bullish hammer” candle around April 26 and drawn up to approximately a .65 to .70 price support level in that channel at the extreme right (today) of the chart. .80 should hold…*should* hold so “caveat emptor” with this thinly traded stock. I noticed a post that someone got .85…nice buy with .80 likely support. I, myself, picked up some at .86
We won’t care much when this is 1.86, 2.86, 5.86….
So I thought I’d share what my thoughts were while looking at the chart after the close today. If anyone found this interesting, let me know!
Have a good weekend and Happy Father’s Day!!
Scott
Come one now, TECHNICAL ANALYSIS!!!
Like I said in previous posts, I can’t help but see patterns with my trading and experience. This is a little long, though thorough and interesting (says me at least!!) so read as much as you like!
I wrote the other day that the 3 long “green” candles through the .80 cent level might be a “blow off top” ripe for a pullback and, indeed, it appears that we have pulled in from those higher and higher highs days above 1.20 which equated to a 50+% percent gain through that .80 level. I explained that the blow off top may not be sustainable, hence the pullback and explained that this is *healthy* as you do not want a straight-up-and-up scenario.
I drew some channels and breakout levels on the chart below…all a decent amount of consolidation and bullish setups through highs and continuing higher.
I also noted some specific candles and their corresponding volume and I’ll make some comments, some in hindsight and some forward-thinking. I apologize in advance that I may not know the specific dates as I’m just eyeing the chart below and the volume for a given day…
So, in hindsight…
The candle around April 25th or so (the first volume bar I note on the left) where the tail of the candle pierced below the .28 level or so. That candle is a “hammer” and a bullish signal, especially when emphasized with volume which was the case having traded near 300,000 shares that day.
The next volume day that I noted corresponds to a strong bullish candle pushing the stock not only above over 2 trading weeks (12 days) of resistance at .40. Note the volume on this day again approaching 300,000 shares. If you bought through the .40 level on this day, you rode a bullish candle above .50 and *never looked back*. If you had, for example, your initial mass of a position from .05 or .10 or wherever below, you could hold and trade around that position, buying through .40 and selling .80 and then 1.20 for a 1X and 2X return….just gravy for fun!!…while still holding your initial position!!
The next noted volume bar is through what looks like the ~.65 level on June 3. Decent volume through here and if you bought .65, you haven’t looked back from this level and saw almost a 1X gain through the next 6 trading days.
From June 3 to June 6 we have a *real nice* bullish triangle pattern with *clear* resistance through .80. Again, buying through this level and 3 days later you’re selling for a 50% profit!!
*NOTE HOWEVER* the volume on the breakout through .80 on June 7. You want to see *much higher than average volume* to confirm a breakout through that type of triangle pattern set up. Look at the volume…not even 100,000 shares…just, perhaps, “average.” Not what you want to see. That low-volume breakout, coupled with the higher and higher highs through 1.20 carries a bit of caution and suggests the “blow off top” that I mentioned previously. After the 52 week highs of 1.23, we gap down and don’t trade to the 1.23 highs. Instead, we have our first bearish candle in perhaps *3 weeks* and…look at the volume on this down day…over 200,000. Probably “penny people” taking some profits or trading around their position. Someone also noted that we filled the gap down to the .90 or .91 high of the candle 3 days before (the day of the initial breakout through .80).
The last two candles should just be a single candle. For some reason, charting programs I have used will double-print a Friday candle for some reason, removing it at the open on Monday. This day started bearish with the high of the day below the close of the day before. The volume, though “OK-ish” was nothing particularly strong. This perhaps signals not a sell off in days to come, perhaps a start of some health consolidation.
Going forward…
It appears that the breakout through .80 on low volume and setting up a bit of a blowoff top foreshadowed a selloff and pullback which we are currently experiencing. As we are not approaching heavy volume…say, 300,000 or more…it appears for now that this is just an expected, healthy pullback and, hopefully, the start of some consolidation for a move higher. Levels of support should be .80 and even down to .65 would still confirm the overall bullish uptrending channel shown by the red lines on the top of the channel starting back in March around .28 price, touching the high around April 10 and the bottom of the channel with the “bullish hammer” candle around April 26 and drawn up to approximately a .65 to .70 price support level in that channel at the extreme right (today) of the chart. .80 should hold…*should* hold so “caveat emptor” with this thinly traded stock. I noticed a post that someone got .85…nice buy with .80 likely support. I, myself, picked up some at .86
We won’t care much when this is 1.86, 2.86, 5.86…. So I thought I’d share what my thoughts were while looking at the chart after the close today. If anyone found this interesting, let me know!
Have a good weekend and Happy Father’s Day!!
Scott
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