NeoMedia Technologies, Inc (NEOM)

[chartist1]

CHART OBSERVATIONS AND COMMENT:

As I mentioned on 11/24 I was waiting for NEOM to pull back to about .01 where I saw support on the weekly chart and then re-evaluate at that point. I am (at some point) looking to enter my 1st stock position since 2006 and (absent meaningful news) I am using the charts to guide me.

Observations:
1) This past week NEOM broke down from a Descending Triangle Pattern (bearish) after fighting a month long battle at just under .012 cents. The Descending Triangle is Bearish because price keeps rising from a flat floor (in this case .012) but hits a lower and lower descending ceiling as the days go on. This creates downward pressure that eventually sends the stock breaking through the floor and usually the break is strong. The floor broke last Thursday. This sometimes creates a "waterfall effect" where the slope of the price decline accelerates before stabilizing at new support. We are in the middle of that now. If that continues I will likely take my 1st position at that new support area. I would NEVER trade like this (catching the falling knife is for beginners).... but as a speculative investment this will work for me.

2) Price is fighting a losing battle at the bottom of the daily Bollinger Band as the band is bending down and price is following. Of larger concern for me is that price has finally broken through the Middle Bollinger Band of the Weekly Chart after stayingn above it for 2 months. Price has only reached the Upper Band on the Weekly Chart 3 times in the past 3-years and two of those three times it has fallen all the way back to the lower band. Now is the 3rd time and we will just have to see what happens. That is currently all the way back to .0037 as of this typing. It does not mean that it will happen. Just worth watching.

3) Back to the Daily Chart. We have a potential "kiss of death" (that's what it's called) on the daily chart where the 50DMA rises up to the underside of the 200DMA before falling back down without crossing above the 200DMA.

4) It seems likely now that the RSI will again fall back to 30 unless positive news shows up first.

5) The one good thing from a broad perspective (I mentioned this on my 11/24 post) is that over the past year price has made a lower high on the chart for the 1st time in forever (The Sept. low was higher than the prior Jan/Feb low of this year). We have yet to get a Higher-High on the chart (Oct high not as high as the March high.... but that could still happen...and that would be a BIG BIG DEAL as it would signify a long term trend change on the chart.

Comment: For those of you who know me I try to make very even keel comments based on what I see.... not what I want to see. I am not trying to paint a gloomy picture.... just an accurate one, to the best of my ability. As I said, I will be a speculative buyer at some point and it might come soon. There is no doubt that 2010 holds meaningful promise for the space that NEOM is in.

Happy Holidays,

Chartist1