I get what you mean but not your meaning. Your saying that the bag holders are the reason this sold off at the EOD or could continue selling this? If by the bagholders your talking about day traders who just jumped on this for a quick momentum trade then your right but they wanted out before the bell closed. That happens. Truth is that right now whether your Green, Black, or Red you only have a paper gain or loss. When you sell at a loss and sell for less then you paid for it, then that's when you lose. Who wants to do that? If someone was worried about holding a bag that bought in today they would have exited already, seems much to risky to hold over night to me which explains the volume at the close.
The stock over the past 6 months has churned at a clip of 4 to 8 cents a share with the majority of the time it being between 4 and 5 cents. The average volume here between the months of February and March prior to the leg up on March 22nd was less then half a million shares. The need for someone to average down would be true especially if they happened to be a shareholder who bought in on say October 23rd, 2010 when the share price was 23 cents a share. If you need to average down then you likely already have bought when it was lower then it is now or maybe these people will buy more tomorrow. But that's buying pressure not selling pressure. Buying pressure makes the stock go up right?
The moving averages on this show much support at 7 and the bounce that happened today around 6.3 which ran it back up to 6.9 showed a strong base. If your someone who was lucky to buy in this on February 23rd when it was the lowest then maybe this is what you've been waiting for. You have over a 100% profit (buy at 3, sell at 7) but this has been at or over 7 for quite some time. Why would you sell this now if you were one of those people when you could have sold at 9 on March 31st?
If the company is diluting then this will test the 5 cent low as threatened here by someone tomorrow but this hasn't been at 5 cents since February 22nd and unless consumer confidence looked at that PR and crapped on it I can't see that happening. The chart looks like a sell off in October followed by a steady slow climb up to me over the past 6 months which honestly if I didn't expect to continue wouldn't have invested my own money today here.
Scared money don't make money. I'm confident this turns out to the levels it was at in October before too long. But that's my opinion. Buyers gonna buy, sellers gonna sell. Don't let fear of losing keep you from winning. This is just my opinion. GLTA
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