HOD close would have been a nice add to today but the next best thing happened. The day held a large portion of the gains AND closed above the first level trading day resistance. Being parked right under the 50DMA is a classic park on such a momentum day. But the hold above the the resistance level is key with now uptrending 20 and 10. As said, I don't see the 50 as having been the real resistance point as much as it was the next trading day resistance of .0175. I think we will take the 50 tomorrow and that will set the table for next week.
In order of desired case, we'd like to see the following for tomorrow: 1. Any close over .0174, which then clears the path for .022 2. Any close over the 50 to continue setting the momentum table towards #1.
The great news in the near-term is once we get over the .022 trading day/.024 200 resistance, the channel is clear until the next MINOR resistance point at .036 - .038 area. Once the SP get's in those waters, the .05's/.06's are then well within striking distance because the next also MINOR resistance point isn't until .055, so much is possible from there because the .04's are clean. At very least, imho, that is where this stock belongs once again awaiting further developments. The company is miles ahead of October. If .05 was supported then for 2 months, it's certainly appropriate for today. It already proved it belonged there before there was a crisis of confidence. With that solidified, ticker cleaned and certified again, 2nd gen product ready to go, that's where it should be once again awaiting the next level. More than fair and I believe that's what will be seen. It's back to sanity for this ticker...
Significant here, even outside all the good influential TI's that are seen now and set-up for the near-future, is what's absent now that was in full force in the down-turn. The daily retail dumping out of fear, EOY issues or whatever. That's why I believe we are now seeing new-found strength and solid higher support levels. That's why we made it back over the 20, which is where it all had to begin. Take away that constant daily drain which deprives other agendas of fuel and further desire, add in healthy new excitement and interest, and you have a decent-tasting cake once again. gl
