TECHNICAL ANALYSIS

[DonLeopoldo]

PLYCF+NWWV Charts (MERGER NEWS, Friday After the BELL)

Rumour says there seems to be huge short positions in both stocks. Lower O/S and Lower Float in PLYCF should make it move faster. But I think shorts can cover in the new company, so it doesn't matter to close positions in either of the 2 stocks. In NWWV, they get 1 share in the new company, and in PLYCF they get 0.8 shares.

Putting the NSS stuff aside, and sticking to the charts; I see a 1st resistance as follows:


http://stockcharts.com/h-sc/ui?s=PLYCF&p=D&yr=0&mn=4&dy=0&id=p40054734973


http://stockcharts.com/h-sc/ui?s=NWWV&p=D&yr=0&mn=4&dy=0&id=p78531312656


I believe this resistance will be overpassed, because the 0.057 in PLYCF was attained based on rumours of a JV. What we have now, with the MERGER, is a much bigger 'NEWS'.

Anyway, the 1st "flippers' resistances" for a +100% are drawn in the charts above, and they match with the conversion ratios of 0.8 for PLYCF and 1 share for NWWV in the MERGER.


Link back for other recent charts I annotated for PLYCF.

Annotated charts done before, in NWWV, which I have also been following:


I called for the "inverted HS's" to over 0.032; and a pullback afterwards, with a later breakout of the "green line" (we are at that tomorrow, IMHO):


http://stockcharts.com/h-sc/ui?s=NWWV&p=D&yr=0&mn=6&dy=0&id=p13042922600


The pullback came, and the resistance buyback level was also called in this chart, anticipating the indicators' reversal:


http://stockcharts.com/h-sc/ui?s=NWWV&p=D&yr=0&mn=6&dy=0&id=p13042922600


Now, we are here:


http://stockcharts.com/h-sc/ui?s=NWWV&p=D&yr=0&mn=7&dy=0&id=p32361985279


I call this chart, the "inverted pictures' chart", because is full of "inverted head & Showlders" in short, and mid term, even with small IHS's inside bigger IHS's.

The minimum target for the "green" IHS's pattern, to test its breakout, is on the top blue trendline drawn in the chart.

Green IHS's goes like this:

57(Nov)-16(Dec)-50/36(Jan)-12(Mar)-36(Apr)-15(May)-Expecting "over 57"(From May 14th).

Blue resistance line is over 0.057 already, and soon at 0.072 by end of may.

Actually, a breakout of the 5 months' IHS's in NWWV gives a minimum target of 57+(57-12)=102, if broke tomorrow; and 72+((57-12)117 if broke by end of May, from 0.072.

I believe that real "strong resistance" in NWWV is around $0.1020-0.1170 before end of May.

It matches with a x2 over the High @0.057; 0.0570x2=0.1140

Correlating with the 0.8 conversion ratio, these resistances frame in NWWV, gives us a resistance freme in PLYCF of:

NWWV 0.1020-0.1140-0.1170 x0.8 = PLYCF 0.0816-0.0912-0.0936

In the PLYCF Chart, annotated Apr 10th, there is a "magenta" resistance line @0.080~ by end of May. And a horizontal resistance @0.0995-0.1020:


http://stockcharts.com/h-sc/ui?s=PLYCF&p=W&yr=1&mn=2&dy=0&id=p17911027339



http://stockcharts.com/h-sc/ui?s=PLYCF&p=W&yr=2&mn=0&dy=0&id=p10504630151


In PLYCF, above, there is the 0.1450 resistance level, and then we go to over 0.0175-0.2000 (+/-).


My thoughts are that the 0.145 will be passed, and then it will be time to finally sell and get out of the game... Will it go to 0.2-0.4 renge in mid term, due to big news and short squeeze?... we'll see !

Flipping points, for me, have been drawn, and will try to flip some of my shares in the way up, accumulating each time (if beeing successfull on accuracy).

I got in PLYCF @0.0130 based on the 61.8% FIBO retracement (Timeframes), and have made several successfull accumulative trades already:


http://stockcharts.com/h-sc/ui?s=PLYCF&p=D&yr=0&mn=8&dy=0&id=p66112041399


Jan, 5th, I draw an annotated chart, to set a low @0.0120 and an entry point @0.0130. I tried to predict an Inverted HS's reversal, but was too greedy and didnn't consider the symetrical right showlder. If you look closely at this chart, there was a "magenta" line that was anticipating an intermediate resistance around 0.053 (+/-). In fact, the "left inverted showlder" also did have an intermediate resistance at that "magenta" line. Both "inverted showlders" would be made, each one, of a "Double Bottom Reversal" with an intermediate High at the "magenta resistance line". The Long term "Inverted Head and Showlder's" breakout point is now over 0.1750$. I am talking about "LONG TERM" resitances,... not expected near term ! ... but I believe that in the mid-long term, the $0.4 will be seen.


http://stockcharts.com/h-sc/ui?s=PLYCF&p=W&yr=1&mn=7&dy=0&id=p68844257454


Now, 0.1750-0.2000 range,... this is my personal top target in PLYCF before summer. I believe that in the LONG TERM, the new MERGING company will go to test the $0.4's, lost during Jan 2005 ( http://stockcharts.com/h-sc/ui?s=PLYCF&p=W&yr=3&mn=0&dy=0&id=p81542234338 ); chart annotated at the end of this post.

I marked my final target in this chart by the time of my last time I recently got back in PLYCF (I'll try to make several 'flips' on the way, though):


http://stockcharts.com/h-sc/ui?s=PLYCF&p=W&yr=2&mn=0&dy=0&id=p88299640183


400M A/S in the MERGING Co., going to the OTC, and IF Internationally Successful,... check the VERY LONG TERM Chart, and the SMA's 52(1 year), 104(2 years) & 156(3 years):


http://stockcharts.com/h-sc/ui?s=PLYCF&p=W&yr=3&mn=0&dy=0&id=p81542234338


The breakout point is HUGE, here, this coming week, anticipated by the indicators. Weekly STO breaking out, will anticipate a POSITIVE Weekly MACD, IMHO, which is HUGE.

I've tried to figure out a trendline for the next 4 weeks. I think it could be the "green" line, in STO and in PPS, ending at the "red" vertical line. IMHO, and just a guess!




All in my opinion.