Bottom will be seen when Uptrend Begins.
Yes, there are many technical indicators that suggest an up trend is probable. Note that the word is probable and not guaranteed.
If the bottom is in, great. Invest your cash today and see your profits appear tomorrow and grow the next day. (!) I don't think you would fall for that one!
I just love how "over sold" arguments are obliterated when there is a downtrend to a new, lower valuation of the stock.
Right now there is a tiny, little 5 day triangle that could break to the upside. It is very small and very weak.
The volume swell was related to lowering price. This is never good. Price movement on higher volume indicates a strong trend. Well, that one was down.
Oversold? Of course.
If the volume swell was at constant price, then volume went away for a while AND price stayed constant, then in some weeks it is not uncommon to see the stock break strongly upward. I don't see that particular formation here.
Is any of this enough to call the bottom? Of course not.
It is one thing to predict a bottom on a real stock with real market forces bearing on it, but a penny is 99.9% infested with false promotions, deception, promises - all things that have no place or bearing on a "legitimate" stock. So all these technical indicators are of much less use.
I like to stick to the basics (Edwards and McGee) and when you see a breakout (with confirmation), then the odds are with you.
We haven't even seen the break out yet, much less the confirmation. (To all you sages out there, what is the definition of the confirmation?)
My position is unchanged, the bottom is not known yet. The stock could go lower. Hold onto your cash until it is OBVIOUS you will make money with this stock. If you miss the bottom by 20%, that is no big deal since this stock will run multiples if it hits.
Oh, as an exercise, look at all the "bottoms" that "formed" as this stock declined from .05 to now, .0005. That is a 100x loss of value. You will find all sorts of "bottoms" in that decline.
AI
