If an investor purchasing stocks does not have knowledge of understanding technicals, such as support and resistance, chart patterns, the use of trend-lines, as well as using RSI, they will (most likely) not understand what is a proper entry. Or, what is expected to happen after a significant surge up in the share price/volume. Inevitably leading to the purchase of shares at a premium. With that being said, I posted a video in July explaining how it appeared that SGMD had begun trading on such technicals. Where I explained that if SGMD could get back above the 50 SMA and hold, there would be the strength to push into what eventually happened beginning on Feb 3rd. What this means is that this stock is being traded now on these technicals. And PRs are targeting the set-ups that the technicals provide. Moving averages are not magical, but certainly do have an invisible power. It is because traders use them to enter and exit their trades. Trading Algorithms use them as well. So once you are able to see these Moving Averages as being a valid and useful tool, you can then anticipate what to expect for the next move. Therefore, you are more aware of what happens after a price surges up. Once you are so far above the Moving Averages that there is nothing above for resistance, you should then be looking at the RSI for the top of the move. SGMD crossed 60 RSI on Feb the 3rd and went all the way to 97 RSI, before it topped out. My estimation was around 88 to 90 RSI before a pull back. But it far exceeded that after what appeared to be a short squeeze from .0082 up to .02. The RSI is the tool to use to anticipate a pullback. So what I am saying is that now we are in, what is the only thing that can happen after such a move. We are looking for support. We are still way above the 50 SMA on the daily. So that is good, but we need something for a support. Using the 4 hour time frame we are holding support on the 50 SMA. And this appears to be a good place to hold until the 50 SMA comes back up to meet us, at this current price. We want the 50 SMA back beneath us, but we do not want it there because we dropped to it. We want it to come to us. Now here is where this gets crazy. If you look at my Screen-Name, it is 72 American Patriot. Two of those things are rather obvious, but one might not be as such. Well, you've probably guessed it by now, but I was born in 1972. On February the 4th. So... SGMD, after holding the 50 SMA since Jan 14 began it's upward ascent on February the 4th: my Birthday. It proceeded to climb upward then closing the day @ .0024. The date of February the 4th, is 2/4. It gets better. The RSI topped out that day, and began it's first pullback since Jan 29th. With an RSI of 49.72 (It's been 49 years since 1972. Feb. 4th was my 49th birthday) the RSI continuing ascension until Feb. 4th. With an RSI of 72.72. So my Birthday being February 4th 1972, or 2-4-72, the stock reached a price on Feb. 4th of .0024 cents, topping at an RSI of 72.72. Not just an RSI of 72, but an RSI of 72.72. Seriously, so crazy. Here is what is really crazy about all this: I began to pay attention to what SGMD was doing so far as technicals, on June 12th. Where the price hit a high that day of .0024 (2/4). The next day crossing the 50 SMA and continued moving upward with strength, for 9 trading days. A brief pullback in there, but a strong recovery pushing all the way up to a high of 72. Yeah, it's ok. There is definitely something to all that. And there is more to the story, as far as the significance of the date. If you would like to know about it, just ask.
