Avitar, Inc. (AVTI)

[interestedInCharts]

sendo, I believe in charts, but I have seen much uglier charts than this one recover quickly. Think of a macro few of the DOW when it crashed in 2008 and then rebounded in like a rocket in 2009, with 2010 being more of a consolidating period.

So think about the psychology of this. All charts do is map the psychology of trading. And investors are emotionally charged and almost mental at times.

One thing charts do not show is the effect that a low float penny can have to the positive or the negative. The bullish part of the chart here is the realization of groups of retail investors playing a low float play and trying to lock it up. As they try to deal with retail flipping, they start to fracture. One group sells, slowly to make a profit, maybe days now. Today someone, group or entity with a ton of shares began a selloff.

But what the MACD doesn't show is when the same groups that are fighting to buy or sell see the opportunity to reverse things when the retail investors are losing faith. They can converge.

Then they come back in buying, lamenting that it is too low not to buy. And before your know it, the "sell off" every flipper is screaming about (just to get more shares) does not materialize and the stock rockets to the next level.

Not saying that is what we have here, but not saying that it is not.

Don't let your chart guide you in a time where it is just a toss of a coin, a penny if you will.

Will everyone play or bail?

One good thing is market is still slow, so peeps tend to go back to stocks they know.

Peace.