Pmlg, before I started trading I took an intensive stock trading course which covered technical analysis in some depth, and I have subsequently spent a lot of time increasing my knowledge, so I agree with you that it's important to understand charts.
I see a double bottom or arguably even a cup and handle, which is a strong reversal pattern, which indicates to me that we may see a reversal from the previous downward trend. I also see more buying than selling over the last few days, including the day with the big wick, since when we've moved further north, which completes the pattern. Level 2 looks good, and the fundamentals for this company show it is well underpriced, but as you state, there is resistance at the current level and at .05 (which you can see clearly on your 12 month chart, but is less clear on my 6 month chart).
If we get (and stay) above .035, we can cross the 50 day MA, turning our current resistance into support and if we can climb above .05 we can call it a break out... but not yet!
I see a double bottom or arguably even a cup and handle, which is a strong reversal pattern, which indicates to me that we may see a reversal from the previous downward trend. I also see more buying than selling over the last few days, including the day with the big wick, since when we've moved further north, which completes the pattern. Level 2 looks good, and the fundamentals for this company show it is well underpriced, but as you state, there is resistance at the current level and at .05 (which you can see clearly on your 12 month chart, but is less clear on my 6 month chart).
If we get (and stay) above .035, we can cross the 50 day MA, turning our current resistance into support and if we can climb above .05 we can call it a break out... but not yet!
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