QED Connect Inc (QEDN)

[rich pearl]

because no stock goes up exponentially without either pulling back and/or taking a breather, this had to return to .0004. it's what i'd call a natural extension of the trading.

feel free to disagree, but here are four reasons why i think that:

first off, .0004 has now become the support, and, as it is with any support, it gets tested and retested. it then has to hold that point to set up a test of the resistance above. in this case .0006.

then, on the bid break of .0006, this should test the area around .001.

secondly, though there is nothing to definitively rule out dilution, this trading is very common to these kind of runs. daytraders, momo players, disgruntled longs, and position traders all sell shares into volume. keep in mind that QEDC traded over 400M shares on Thursday and Friday between .0001 and .0003. it therefore belies credulity to think that everyone who bought at those prices held.

thirdly, most of the MMs on this are retail. prior to this month the hammer here had been the diluting MM VERT, who went to .001 last Thursday and has not moved since. ergo, the likelihood of this becoming a rolling stock, as versus one that's tanking, is pretty good. i saw this same thing happen on SIVC when it was trading around .0003 in January and VERT got off the dilution train.

and lastly, todays fluffy news was not enough to bust the chart to an unsustainable height. had this run sans a breather to .001 there would have been a lot more selling!

of course i could be wrong, but i think this will churn here in the .0004 - .0006 area before testing the 20 day MA at .0008, be it today or tomorrow. in a pincher chart, the stock has to get a psar buy signal -- it did that this morning -- and then break out of the lower half of the Bolinger Band, the 20 SMA.

as usual, the chart is your friend. study it and use it. it often tells the tale.

best of trading to ALL

richard