Mindpix Corp. (fka MPIX)

[coolnapz]

My 2 cents on $MPIX

This is targeted at the other longs out there and people looking at the bounce play setup. My 2 cent initial price target was not pulled out of thin air, it is based on the behavior of the stock over the last year. Each night I scan through hundreds of different big board stocks and penny stocks looking for chart setups. You can see my original entry here on April 13th I told Mach that I like the setup but only if it moves to the September support level. It moved to that level this week so it was a no brainer buy for a bounce to at least the 2 cent levels.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=74371808

Here is why I am sweet on both the current support level and the 2 cent initial upside target.

Stock prices are the footprint of human emotion, and humans are creatures of habit. If you take a look at where the stock was exactly 12 months ago you will see that it was trading exactly where it is today. That is no coincidence as that was the entry point for the early movers who no doubt banked.

As you can see when $MPIX made it's first bullish move in June of 2011, once again roughly 1 year ago from where we are today, it ran exactly to the 2 cent level before pulling back to the .004 support level. The .004 was the point at which the rally began, so all you are seeing is a retest of the support. It hit .004 in late June, then bounced to a penny. It hit .004 in August, then began to climb gingerly back to 2 cents.

The price consolidated in the 2 cent area, chopping up and down to build pressure before making that October rally to the highs. That explosion of optimism was short lived, and the suckers who bought the highs have suffered a slow and agonizing decline. Notice, however, the 2 cent area was an area of support on the weekly chart on a closing basis. That means that even though the price traded through that area, 2 cents held in October when it got tagged, and February and March when price was consolidating to the downside. Naturally, when that level broke, price returned back to where it's journey began 12 months ago at .004.

This is the beauty of understanding how to read the charts. It puts the pieces together. I also love how this play has a change of management right at the dead lows. It's going to be yet another bounce catalyst, like when a crappy football team fires their head coach in the off season. The replacement coach almost always comes in on emotional fanfare and gets a honeymoon period to work his game and turn things around. Same deal with companies.

As any fool can plainly see the capitulation selling marked the low, and all we had yesterday and today is a game of tit for tat ask slapping and bid whacking. This means the frustrated sellers are pretty much all gone and the cycle is starting over again with bottom buyers like me who have had this on radar and willing to give this company a chance.

Don't get me wrong, I did not idiotically put 50% of my life savings in this stock, but a 2.5% allocation out of my penny stock portfolio, separate from my large cap portfolio, at the dead lows for a chance at a 500% bounce is a good risk reward setup.