RE: Purl, by Beigledog
Beigledog inquires,
"How can a chart be forming a double bottom when it's
bootom support is far above the "double-bottom" area?"
Volatility. ALMI is very volatile.
First true double bottom is actually manipulation.
That sudden one day fall to .85 per was shorting
to trigger stop losses, those allowed by some
brokers for penny stocks. That was actually an
accumulation phase in anticipation of rising value.
Prices were pushed back up, followed by some panic
selling by holders who are gullible. Subsequently,
those of us who bought during the dips, formed a
stronger group of holders, which maintained an upward
trend in prices.
Subsequently, prices have been tested for bottom
support a number of times, which were amplified
by general loss of consumer confidence in our
current American economy.
There are a lot more forces at play than are
shown in my simple "opinion" chart.
Double bottoms can form at, below or above
average bottom support; very common. It is
yet to be seen if my prediction of a forming
double bottom while prove true. I believe
this will happen, but there is no guarantee.
My expectation is ALMI will retreat to the
1.05 to 1.10 per range for accumulation,
before moving back up again, which should
form a double bottom during an upward trend.
Should my "opinion" chart prove moderately
correct, I would expect price per share to
exceed current bottom support of 1.20 per
in the next twenty to forty days, about
where my trend line and bottom support
line intersect. That can change dramatically.
Cleary mine is somewhat founded speculation.
There are so many market forces at play, none
can accurately predict what the future brings.
Most important factor, currently, is loss of
consumer confidence leading to a lack of buyers
in the stock markets.
Readers are to be cautioned I am expressing
opinions and my chart is opinion. Readers
shoud exercise caution and act prudently.
Purl Gurl
