02 Secure Wireless, Inc. (OTOW)

[dmlabuda]

Amazing! That has got to be frustrating. I now see three false bullish breakouts of the current trading range. Today’s rally came on very good volume too but, at the end of the day, the bulls are right back where they started from inside the trading range. I suppose you could actually draw a bullish channel on the charts now but, we also have a bearish divergence between the Slow Stochastics that goes back about a month now. I got to be honest here. I have not seen anything like this ever before. So, my rule in situations like this one is “when in doubt, stay out”. At this juncture, all the indicators appear to be in conflict with one another. The ADX/DMI shows an emerging uptrend, the moving averages show an existing uptrend, and Williams’s %R shows a sideways market that is neither overbought nor oversold. The Stochastics are bearish. The sideways channel remains in tact. We could be looking at a saucer formation in the making. That seems most likely to me at the present time. But, the Stochastics still bother me. All in all, I see many more exciting opportunities out there where the signals are clear cut so, for now, I’m still on the sidelines here. I would vote for a quiet day tomorrow and an indeterminate candle pattern. The truth is anything could happen. I’m beginning to doubt that the market will fall now but if it does the down side appears to be limited anyway. On the weekly chart this stock is still in a down trend and the chart also appears to be indeterminate as to where this stock can go.