What I’d like to see is the share price to reach as close to that ma200 (.0050) as possible before the next Press Release. Company has a history of putting out press releases to coincide with their Quarterly Reports. The First 2 of them this year have been very positive so far.
This would make the stock more likely to hold the ma200 and use it as a new support level after a clean break there. Stocks that end up trading above both the ma50 and ma200 average lines and remain there for several days are very bullish as they are in full breakout mode during this period and attract a lot of technical traders and investors alike (look at the chart on SEEK for an example of this).
A clean break and hold above the ma200 and ACGX will then test previous high (.0096) and after that will be in blue-sky break out mode where it will look for new resistance and support levels at higher prices. There’s the psychological .01 cent resistance break as well. Sometimes they hold above it after first break (like ACYD) and, other times, they will break and then consolidate below it first (usually when there is heavier profit taking on the first break of .01+ area) before climbing back up for a stronger break above .01 which then holds as support going forward (like TDEY).
Here’s what intrigues me the most about this one, though. Look at the volume on 10/29 compared to the volume on 08/05. It’s about twice as much, dollar wise, and there was no promotion this time around (as there was on 08/05). A whole lot of money bought it up between .0035 and .0045 last Tuesday. Large blocks that are still holding, imo, as I still have yet to see those big buyers dump it.
315,295,700 in volume and $1,182,359 dollars traded last Tuesday and, so far, only 101,282,800 volume and $380,055 dollars have traded it since then (including today). That’s 1 million dollars from out of nowhere on a single trading session and this stock is still relatively under the radar (at least on iHub it is).
To put this in perspective, look what happened on SEEK after that one traded 1 million dollars for the first time on 10/23. That day, it did .0025 to to .0044 intraday (and closed .0037) and then dropped back down to .0025 low (and closed .0032) on the following day on half the dollar volume and then consolidated on lower volume in the high .002s and .003s for about 5 sessions before heating up again breaking right through that .0044 resistance when it traded over a million dollars again. Also keep in mind that SEEK has over 12 times the amount of shares in the public float as what this one currently has and you can imagine what that kind of buying pressure does to a low SS stock like ACGX.
Also, compare the 3 days that followed the 08/05 move to the 3 days that followed the recent move last week and you can see that it is behaving totally different this time around. This time the stock is holding its gains, trending up and using fib retrace levels as supports which is telling me that there is quite a significant amount of shares that were bought up last week that are still holding it through this week.
My only small concern is a possible open Naked Short position that sometimes leads to sharp Market Maker manipulation of the price which is what happened on 10/31 when they walked it down on a series of 10k bid paints and shook out a lot of retail. Sometimes these drops lead to massive panic dumps that break down the chart but I like how the stock has recovered from the first attempt already and they seem to have a hard time getting retail to dump anything under .003s this time around. Accumulation is going up and the RSI is headed to that 70 launchpad area just before major bull moves.
