So...
A 6 month chart shows a trader a lot:
1.) most striking is a very real resistance in the low to mid $0.40's. PHOT has entered the low to mid $0.40's 4 times, most notable are the last three @ $0.43, then @ $0.42, and most recently @ $0.41.
A triple top with LOWER highs. (Bearish)
(Triple top, with lower highs ON lower volume indicates a long term trend that is about to reverse)
2.) MFI has weakened substantially on the 6 month chart. (Bearish)
3.) The same 6 month chart shows volume peaked about 5 weeks ago and has steadily declined. As volume declined, PHOT failed to post higher highs and continue its uptrend. (Bearish)
4.) Clear support rests at $0.35, $0.30, and $0.27. After that... Only minor supports between $0.14 and $0.26. (Bearish)
5.) 12, 21, and 50 day Moving Averages and EMA's continue to rise. (Bullish)
6.) 6 month RSI is neutral (neither bullish or bearish)
7.) PHOT has loved the price channel over the last 3 months...violating the lower channel only 4 times to the downside with nearly immediate corrections back into the upper half of the channel after each. (Bullish)
All of this points to a correction in PHOT. Not a big one... (I guess that's a matter of perspective though) and I'm not suggesting anyone run for the hills. The above 7 points are for any traders out there who are wondering if they should trim down or go to cash in the position ahead of the weekend.
This stock was at $0.3010 the other day. I had sold last week at $0.39 and when the stock bounced I bought back in. The stock is behind a great management team BUT that same management team has, in my humble opinion, let investors down since the vote. I mean, at least I feel let down by them. I'm not expecting PR's everyday but February 7th, 2014 was a long time ago in a traders eyes without a peep from the co.
It's my opinion that silence from the company has contributed to the weakening chart. That contribution to a weakening chart, in turn, could contribute to a strengthening chart IF there is good company/industry news but it's been 3 weeks since the vote and two weeks since the Feb. 14th banking rules memo.
Trade well.
