AHHH, I just love the intellegent questions!
What I am looking for is a pattern of testing support and resistance. Preferably between two static points. (say .08 and .12 for example).
And yes, I do find the current pattern interesting. If we were to be using TA(Technical Analysis) to analize this trading we would be calling this the early stages of an ascending triangle. Meaning that the lows (support) are gradually increasing while the resistance level remains constant.
I would love to be able to tell you that the resolution of any of the triangle patterns foreshadows an increase in the price that is not the case. While each triangle (ascending, descending & symmetrical) has slightly different percentages, they all are very close to 50/50 in predicting up or down price movement. What they do tell us is that when the triangle is completed (resistance and support meet) something big is going to happen up or down. Either taking off like a rocket or dropping like a rock.
In this particular case the apex is .12, when the stock trades for a full day or two around that level something will happen shortly thereafter. Up? Down? Who Knows.
Normally you cannot apply the principals of TA to penny stocks. The primary reason being that they trade too thinly for there to be any meaningful information gleaned from the trading. In this particular case there is sufficient volume to amass the data needed for TA. Most of the other indicators don't look so good though. My guess is that we are in for a capitulation, not a spike. Vegas's "no restock" news is not a good sign. As for what he saw in the bottle...could be any number of things and I will not speculate here, but some of the possibilties do not involve company mishandling at all.
Time will tell but a confirmation of no production would certainly have a negative impact on the stock price.
David Weed
aka the Bird of Prey
www.warp-drive.com
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