4keywest - You may have missed this post, so I'm providing it again for you hear, Markets can turn quickly and while the market direction of TYTN appeared to be heading down, with the news and the diamond formation on the charts, right now it is still not clear where the market will go this week, but, my feeling now is that it is very possible that it may continue to go up now.
Friday was certainly an exciting day for the Bulls! However, the market failed to close above $0.004 and that leaves the diamond formation still in tact.
So here is the scenario:
1. The likely probability now seems that the market will gap open on Monday with a follow through rally that will close outside of the diamond and into the channel shown on your charts. In that case, the bulls win and a strong up trend is confirmed.
2. Also probable, Monday’s opening is lower and a lack luster inside day unfolds leaving the diamond formation in tack and the market direction still undecided.
a) In the event of an inside day, the market could still gap lower on Tuesday or later in the week putting the bears back in charge.
b) An inside lack luster day could also simply buy time for the bulls to get up the steam to break through resistance and into the channel above.
Diamond formations are extremely difficult to trade. Nothing is certain. The bottom left and top right sides of the diamond are controlled by the Bears who anticipate lower prices. The top left and bottom right side are controlled by bulls who believe prices will continue to rise. Diamonds are a reflection of the ultimate struggle between the bulls and the bears. They are a rare but significant consolidation pattern.
I was very impressed with the news on Friday! It now appears that TYTN actually does have a deliverable product and therefore sales should be forth coming hence, the price action seen on Friday. In fact, Friday’s price action on the chart looks a lot like a key reversal day for the bulls except for the facts that the price was unable to break out to the upside and close above the diamond and also the volume was quite pitiful compared to the bearish key reversal day last week. Those two points still bother me.
One way or another however, next week will decide the near term future of the market. The long term future will continue to hinge on the fundamentals and the ability of the company to make sales and produce a profit. All of that will (as it always is) be reflected in the charts. Today’s charts while it appears to give more presence to the bulls, does not discount the bears entirely and so the battle will again get underway on Monday. The reality is that there appear to be a lot of people who are not sure the fundamentals are that bullish at this time. But, it also appears that an equal number of folks are true believers in the company.
Now, because Diamonds are very tricky, you may in fact see a breakout to the upside on Monday followed by a stalled rally and a sell off in the afternoon that drives the price and the close back inside the diamond (I’ve seen that happen before). That would be a reversal in favor of the bears. Also possible is a weak lack luster opening and afternoon followed by a late day rally that breaks out and closes outside of the diamond. That, of course would be a triumph for the bulls. My point is, it’s never over till it’s over. Once this battle is finally concluded, the market will most likely continue to move up or down depending on the breakout for at least a brief period of time until acted upon by an outside force like yesterday’s news article. That appears right now to be the only thing in favor of the bulls. Market indicators still look to be bearish. The Diamond on the other hand shows incredible strength on both sides of the market.
All in all, my analysis was correct until the diamond came into play and because the only signals I could see were bearish and you never know what the news may bring, I concluded that the likely place for the price to go was down. Still the lack of volume and inability of the price to break to the upside on the news is troubling. The bears do not yet appear to be ready to quit. Monday and possibly Tuesday should prove to be very exciting days. I love this business! Never a dull moment, you know?
Market Data 
Markets 
AI
