My explanation of the RSI:
Bottom Line: I don't agree with "throwing out the charts" and disregarding Technical Analysis (TA). TA of the chart and indicators gives you a great picture of the the past and present performance and mindset of the shareholders through the candlesticks. Plus, it can point out key resistance and support lines, and obviously it can show you in which direction a stock is trending. But with a GEM like ICPA, it doesn't tell the whole story.
Since RSI is a momentum indicator... stands to reason it would be overbought right now due to all of the MOMO with ICPA. And if and WHEN we have some pullbacks, people will come out of the woodworks and say, "I told you so because the RSI was too high/hot!". But the truth is, the price per share won't drop because a technical indicator on a chart tells it to; that's ridiculous! It will drop because some of the shareholders with signifcant positions decide to take profits or lose confidence in the company, and/or there is a loss of interest and the buyers take control (sellers have to bid-whack as opposed to buyers slapping the ask - remember, for every buy there's a sale, and every sale there's a buyer)... and the RSI will follow, NOT LEAD.
We'll have some pullbacks and shakes (and I think the charts will be good guides as to support levels), but I really don't think they'll be anything significant. If this was a garbage company, we would've already retraced back to sub-pennies. You have to consider some of the recent confirmed deals/news with ICPA...
1) Partnership with EZ VIP (30% ownership by Mark Cuban & Daymond John!)
2) IC Places Hollywood and Static on Punch TV Network this fall - revenues!
3) Clear Channel / ClearVision Digital Network deal and potential revenues - Offical PR "next week" - THIS IS HUGE!!!
4) 1st Quarter Financials to be released in mid-May
5) EZ VIP follow-up on ABC's Shark Tank on May 18th - anticipating the deal with IC Places being announced on national TV!
Given this (and potentially more news/deals), the momentum should continue, regardless of a hot RSI!
Any technical trader should have sold out already. And I would advise them to, because why change the way they trade if it's a proven strategy, and risk making a mistake with another stock in the future?
IMHO
GO $ICPA!
