AI
Thursday, September 13, 2007 10:38:37 AM
** BUYING PATTERN ANALYSIS ** continued from last post, linked back.
On looking at the buying patterns over the last few sessions since the new strategy was announced by the company, the following applies IMO and the daily chart below should be helpful.
The stock had one go at .0006 (50 DMA resistance point at that time) on 9/10 this week. 9/11 was the following day and volume across the market was down. The stock took the opportunity to retrace to .0003 (not much selling there at all though), which was close to the 10 SMA support of .00028 at that point.
What is interesting looking at the chart below is two things IMO.
We are consistently above the 10 SMA support level as this continues to rise and today we are having another go at .0006, making this go at .0006 our third shot at it. The key this time IMO is that profit takers from .0002 - .0003 were probably likely gone (or flipped for a profit and rebought at .0004 after selling some at .0005). Since the 9/10, there has been a significant amount of volume in the .0004 to .0005 area while moneyflow (MFI) has remained overwhelmingly positive over the last 7 trading sessions including today. There really hasn't been that much selling when you consider dollar volume coming in versus dollar volume going out.
This all bodes very well IMO for the next shot at .0006 to punch through it and then we move up from there. If this continues on trend above the 10 day SMA, we should see a low no lower than .0004 today and not much selling there if at all due to the probability of sellers in that range getting out even or for a small loss of .0001.
Those are a few thoughts on the chart and tape, but now for the important bit:
Anybody that listened to the wallst.net interview yesterday knows that there is more news of deals closing coming in the "next days and weeks", so we can expect more news shortly.
As this builds and the chart position looks so solid, who wants to be out? Not me !
On looking at the buying patterns over the last few sessions since the new strategy was announced by the company, the following applies IMO and the daily chart below should be helpful.
The stock had one go at .0006 (50 DMA resistance point at that time) on 9/10 this week. 9/11 was the following day and volume across the market was down. The stock took the opportunity to retrace to .0003 (not much selling there at all though), which was close to the 10 SMA support of .00028 at that point.
What is interesting looking at the chart below is two things IMO.
We are consistently above the 10 SMA support level as this continues to rise and today we are having another go at .0006, making this go at .0006 our third shot at it. The key this time IMO is that profit takers from .0002 - .0003 were probably likely gone (or flipped for a profit and rebought at .0004 after selling some at .0005). Since the 9/10, there has been a significant amount of volume in the .0004 to .0005 area while moneyflow (MFI) has remained overwhelmingly positive over the last 7 trading sessions including today. There really hasn't been that much selling when you consider dollar volume coming in versus dollar volume going out.
This all bodes very well IMO for the next shot at .0006 to punch through it and then we move up from there. If this continues on trend above the 10 day SMA, we should see a low no lower than .0004 today and not much selling there if at all due to the probability of sellers in that range getting out even or for a small loss of .0001.
Those are a few thoughts on the chart and tape, but now for the important bit:
Anybody that listened to the wallst.net interview yesterday knows that there is more news of deals closing coming in the "next days and weeks", so we can expect more news shortly.
As this builds and the chart position looks so solid, who wants to be out? Not me !
