Elite Pharmaceuticals Inc (ELTP)

[Drugdoctor]

Thanks Hank, I've been trading stocks for over 25 years, and have been trading penny stocks for 14 years. A chart is history, but as we all know, every chart looks different because of the size of the outstanding, the popularity of the company, and the amount of traders actively trading, so there is a lot to learn from charts.

Also, at a glance, you can see where accumulation, distribution, support and resistance levels may be in a stock. However, as we have seen, even with a stock "running in the powerzone" as ELTP did for almost 2 months, a technical change can bring it down in a hurry.

Long term, fundamentals and earnings and dilution determine the worth of a share of stock, and investors need to always watch out for the worth of the company. If we believe this patent increased the worth of the company by 1 billion dollars, then ultimately the share price will reflect that increased valuation.

All the chart will do, is help you to determine possible enty and exit points. If you are a trader, these are invaluable. If you are an investor, once you make the initial buy, charts are just an amusement until you get near a sell point, imo.

GLTY