Imagination TV Inc. (IMTV)

[dmlabuda]

Anytime you look at where support is you also have to look at the resistance. In my opinion, the resistance is showing recent aggression that will result in a retest of recent support (currently the 200 candle MA on the hourly chart). The volume at the level of resistance is also very weak indicating that there is a reluctance on the part of buyers to buy at that level. So, the price will have to drop now to a level where buyers are willing to buy in force and I believe the $0.022 to $0.024 buyers have already exhausted themselves. If that's correct, we could very easily see the price fall to the next support levels which would be the 50 and 84 day moving averages on the daily chart currently at $0.0175. Ultimately, I feel we could see drop to the 200 day MA currently just above $0.01. If the degree of Oversold indices at either of those support areas is significant and the volume is strong, then the market may very well turn around an run up for a while again.