Koil Energy Solutions Inc. (KLNG)

[techisbest]

"But if you see continued volume taking the price higher, then things may be different at this time."

A warning regarding that quote from my last message: The word "continued" is key.

A very possible scenario tomorrow would be initial high volume taking the price higher as buyers worried about missing the boat climb aboard.

This short-term over exuberance would be met with traders selling positions that were entered much lower.

Then the chart will find stability. Most likely the horizontal line pointed out by the chart will become support. I do not know if the sideways movement seen last year will be repeated, or if the price will start a more sustainable uptrend. This is where you would want to look for "continued volume taking the price higher."

Only after stability has returned to the chart would I expect a new pattern to emerge.

These periods of high volatility can be dangerous.

I offer this as what I consider a likely scenario. Of course I could be completely wrong and the price just rockets to the sky. Or plummets to the recent lows.

But I think the point of convergence illustrated in the chart will demonstrate its importance.