AI
Wednesday, August 11, 2010 10:26:41 PM
ryall..I still owe you an email reply, sorry, no worries. Glad to have you here.
I think interpreting charts on low floaters is a bit different than some of the usual fare you may be used to charting. Many more variables in play on a stock like this. Esp. when a float is so thin like this one is. A piece of news or a surge in interest and "traditional" interpretations, retests, etc are out the window. Speaking of retests, I see this last one as an important one and I can't see a need for a 3rd give the current condition of the float, which is getting smaller every day. Why? Because this last test has brought all salient elements out in the open. In yesterday's and today's tape especially. Plain and simple, there is no will to sell any quantity of shares lower than .003. And why is that? On my chart below I drew a green horizontal line. This is defined by the current low in this sequence. Now. Look the left of this sequence and BELOW the green line. You have a total of 9 days of trading action (and 3 of those were only intraday spikes) involving anything below this line going back to forever. Why is this significant? Because it shows how few buyers there were below this level here. That's why there was very little selling action in the June retest and why there are even less shares for sale in this latest one. Just no reason for anyone to sell down here when the company is performing and dilution is off the table. And what usually happens in that realization is buyers see a solid bottom and are then more confident all the action is now up. So after two now obvious retests, anyone who really needs a 3rd, should go play another stock! It doesn't get any more confirming than this right here. The other issue is as in last time, any shares that do become available under .003 are QUICKLY snapped up as in today. I got 30K of 'em but they were here and gone. That tells you more of what's really going on.
News here also seems to be imminent. So that also tends to have a huge impact on very low floaters. So I think you have to take all these things into account when trying to assess the situation accurately. Appreciate your input and I think overall you see the same picture as others in that this thing is primed and ready to go. As said, timing is very hard to pin down with such a low float. I don't think I'm going out on a limb to say that given all variables in the mix, this stock can suddenly be .01+ any day from here. The heavy lifting is in, the proof is out on the table.
We also see the overall support trend from the late May bottom following the line perfectly. With one bounce off of it in July and now a second in Aug (and no touch in the June bottom sequence), I for the life of me couldn't see now much higher support becoming established. With the 50SDMA still rising (which wouldn't be the case if the stock were really downtrending), I see at a minimum that about to become new support worst case (~ .005). But if what I think is going to happen, happens next, new support should be more like one of the two upper tops (.009 or .0075). We'll see how it plays out. Looking good imvho. gl
I think interpreting charts on low floaters is a bit different than some of the usual fare you may be used to charting. Many more variables in play on a stock like this. Esp. when a float is so thin like this one is. A piece of news or a surge in interest and "traditional" interpretations, retests, etc are out the window. Speaking of retests, I see this last one as an important one and I can't see a need for a 3rd give the current condition of the float, which is getting smaller every day. Why? Because this last test has brought all salient elements out in the open. In yesterday's and today's tape especially. Plain and simple, there is no will to sell any quantity of shares lower than .003. And why is that? On my chart below I drew a green horizontal line. This is defined by the current low in this sequence. Now. Look the left of this sequence and BELOW the green line. You have a total of 9 days of trading action (and 3 of those were only intraday spikes) involving anything below this line going back to forever. Why is this significant? Because it shows how few buyers there were below this level here. That's why there was very little selling action in the June retest and why there are even less shares for sale in this latest one. Just no reason for anyone to sell down here when the company is performing and dilution is off the table. And what usually happens in that realization is buyers see a solid bottom and are then more confident all the action is now up. So after two now obvious retests, anyone who really needs a 3rd, should go play another stock! It doesn't get any more confirming than this right here. The other issue is as in last time, any shares that do become available under .003 are QUICKLY snapped up as in today. I got 30K of 'em but they were here and gone. That tells you more of what's really going on.
News here also seems to be imminent. So that also tends to have a huge impact on very low floaters. So I think you have to take all these things into account when trying to assess the situation accurately. Appreciate your input and I think overall you see the same picture as others in that this thing is primed and ready to go. As said, timing is very hard to pin down with such a low float. I don't think I'm going out on a limb to say that given all variables in the mix, this stock can suddenly be .01+ any day from here. The heavy lifting is in, the proof is out on the table.
We also see the overall support trend from the late May bottom following the line perfectly. With one bounce off of it in July and now a second in Aug (and no touch in the June bottom sequence), I for the life of me couldn't see now much higher support becoming established. With the 50SDMA still rising (which wouldn't be the case if the stock were really downtrending), I see at a minimum that about to become new support worst case (~ .005). But if what I think is going to happen, happens next, new support should be more like one of the two upper tops (.009 or .0075). We'll see how it plays out. Looking good imvho. gl
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