Helix Wind Corp (HLXW)

[SPM555]

For anyone that cares, HLXW just got put on the watchlist at my little old blog. Very nice setup, good luck to all.

You don't see many sub .001 stocks on the watchlist here.. and for good reason. The setups are very often just not clean and usually I just don't like the risk to reward enough to trade them myself, so they don't go on the list. It helps that this one is hanging out right below .001, and in fact that's the trigger on this setup. On the daily chart below you can see that the price has started to ease up considerably from it's recent downtrend, which has been pretty much just a straight plunge for the past year. While this isn't the prototypical breakout setup, there are a few things that are really hinting to me of a possible sharp rally coming up, and the 60 minute chart (second chart below) actually has a pretty decent breakout setup going for it. On top of the angle of the downtrend mellowing out and actually starting to flatten, the price action has now made it's way above the short and mid term moving averages (15 EMA and 50 MA), and the RSI is looking stronger than it's been since that September pop (and even that wasn't a healthy RSI setup). From December up until just now while the price was pulling out of it's tailspin, the RSI was bumping it's head against the 50 ceiling, and other than the September blip, that's been the ceiling for the entirety of the downtrend. Coinciding with the price recently breaking above the 50 MA is the RSI now trading above it's 50 mark, and factoring all that together leads me to believe that the stock is at a point where the next significant bullish signal could really spark a nice run. As far as what that next signal should be, it's pretty clear that .001 is the closest key resistance, which you can see has had multiple price bounces in the past couple of months, so a break of that is what I'm looking for.



To better illustrate the most recent price action, here's the 60 minute chart with the past three+ months of action. The .001 resistance is very obvious on this time frame, and the recent bullish price action I mentioned (daily 50 MA and RSI 50 breaks) is just as significant on this chart, with the price breaking (on heavy volume) above the 50 and 200 60 minute moving averages, and then consolidating on top with low volume. Now you have the 15 EMA crossing above the 50 and 200 MAs, both of those MAs starting to angle up, and the 50 pinching close to the 200 and looking to get above it. To summarize all this up into one line: I think the chart is in a position where the next buy signal has a good chance of success, and that buy signal is a convincing break of .001.

http://flippingpennystocks.com/