You are putting way to much faith in charts and what they actually tell you. I also think you have a pretty large misunderstanding of charts in general and just how effective they actually are.
You stated:
"Stock charts DO NOT LIE. That is the beauty of them since
there is no "maybe", "what-ifs", "how about" "IMO"
This is a completely incorrect statement. First of all charts don't lie, but they also don't tell the truth either. What they provide people with is raw data. In this sense they are non-bias, but contrary to your statements, they are full of "maybes, what-ifs" etc... All charts provide people with is raw historical data that can be used to try and predict future movements and trends. There is no certainty in them.
This goes for all charts in general, but when one is refering to charts for penny stocks, they are much much much worse. If I had a dollar for everytime an experianced chartist came on this board sand gave his predictions on what was about to happen based on what the charts said, and the stock did the exact oppsite of what they said, I wouldn't need my shares anymore of KATX because I would be rich!
Penny stocks are dynamic. Companies like KATX, at this stage of their life, are small, but undergoing major changes. At this stage, their stock in heavily effected by internal company events and not external market trends and other outside factors. Events like getting new financing, or in our case finding good amoutns of gold, can greatly impact and change the value of the company over night. Charts can not predict these events, nore do they correctly take into account the effects of these events on the pps. What this does is create alot of "false" data in the charts which throws them off.
Big board stocks tend to be less dynamic, and are effected not only by internal company events, but also by outside factors such as the over all economy, trends in different market sectors, etc... This helps to balance out their charts and make them more useful.
Penny stocks are completely different and charts for them are far less useful. At the very very best, charts for pennies can give you a decent idea of the current trend (up,down or sideways) and a extremely rough idea of what "might" happen in the future. Thats it.
Since internal company events have such a major impact on these types of stocks, the charts are really pretty useless. Investors should mostly focus on what's actually going on with the company, what events are they working on, and what could they mean for the stocks pps. The charts could all be saying KATX is going to the moon, but if the results come out with little or no gold, the stock is going to tank. Same thing goes for if the charts all say we are going stright down, and the results come out and say we found tons of gold, our price is going to shoot way up.
One thing is for sure, we are not in a "up trend" as you stated, we are in a down trend. We have been in a down trend since the end of may, roughly. We had an "up" week, but the overall trend is down.
One of the charting systems I use the most and really like for pennies is the fibonacci retracement. This states that stocks typically go down or "retrace" in levels. The levels are 38%, 50% and 61%. Basicly after a run, if a stock gives back around 38%, you look for a reversal back up, if you don't see one forming in the charts then its very likely to go down to the next level which is 50%. If a stock gives back up to around 60% and then shows a reversal, this usually indicates the stock is a buy and the reversal upward will continue over the long term, and reach new highs. If it gives back more than 61%, this is a bad sign and usually a big sell sign. There are often reversals back upward after a stock gives back more than 61%, but these reversals in most cases tend to be very small and short lived, with the over all trend being a long down trend.
The fibonacci system is a very useful guid for penny stocks IMO, and gives a much better prediction on where a stock might go and what are good price points to buy and sell at. But, and heres the but, as I noted above even this is pretty useless on pennies due to the incrediably dynamic nature of these companies.
Anyone wanting to, or using charts for pennies needs to keep this in mind. I only use charts for pennies to try and pick out shorter term trends and movements, not overall longer trends. Again, pennies are simply too dynamic to get any accurate ideas of what they will do over the long term. Level 2 data is a very great tool to really give you a much clearer picture of the short term as well, and is quite powerful when combind with shorter term charts.
That being said, the only driving factor of this stock over the mid and longer terms is what we find in the ground. It doesn't matter what the charts say, it doesn't matter if we go up a good bit or down a good bit before the results come out. Once the results are released, if they are good, then we will shoot up, if they arn't then we will go down. Simple as that. And that is something no chart will tell you.
Any investor here should be very excited, because the biggest driving force in our companies pps, major internal company events, are about to be announced. Not only do we have results coming very soon, as Rick pointed out, we also got MANY other major company events about to take place over the next few weeks and months. This will be the biggest driving factor in our pps. So don't worry or spend much time analizing the charts, the most important thing to analize and research are what the company is working on and about to announce. These will be the key factors here over both the short, and long term. And those my friend all look fantastic.
