Replies to post #52160 on Koil Energy Solutions Inc. (KLNG)

[techisbest]

"But if you see continued volume taking the price higher, then things may be different at this time."

A warning regarding that quote from my last message: The word "continued" is key.

A very possible scenario tomorrow would be initial high volume taking the price higher as buyers worried about missing the boat climb aboard.

This short-term over exuberance would be met with traders selling positions that were entered much lower.

Then the chart will find stability. Most likely the horizontal line pointed out by the chart will become support. I do not know if the sideways movement seen last year will be repeated, or if the price will start a more sustainable uptrend. This is where you would want to look for "continued volume taking the price higher."

Only after stability has returned to the chart would I expect a new pattern to emerge.

These periods of high volatility can be dangerous.

I offer this as what I consider a likely scenario. Of course I could be completely wrong and the price just rockets to the sky. Or plummets to the recent lows.

But I think the point of convergence illustrated in the chart will demonstrate its importance.

[techisbest]

Today the battle unfolds...



It's the clash of the Titans - Taurus vs. Ursa (OK, maybe a mixed metaphor).

Top of a short-term downtrend vs. the bottom of a longer-term uptrend vs. a significant horizontal line of support/resistance. And a "death cross" to be denied.

Momentum from Friday's strong volume should carry into initial trading.

And then we will see if money coming in is here to stay.

Good luck to those hoping this is the start of a major move north.

Buckle your seat belts. Battle helmets may be required, too.

I think I'll order some popcorn before the show. Make it a large - it'll be a long show.