Bob, enjoyed your PNLK technical analysis immensely and all the thoughtful posts on this thread. I believe a young company can at least be partially judged by the quality of its investors. Here are some additional thoughts with the caveat that TA of most OTC's can be likened to throwing bones, reading tarot cards, and consulting "psychic friends!" (And all of this is my opinion only.)
The 200 day MA is too slow and conservative for many tech and growth stocks. Let's look at 10, 20, and 50 day MA's and conservative 15-5-5 stochastics (askresearch.com).
As of now @ 3.28, PNLK is below its 10 and 20 day MA's and is just holding at the 50 day MA. However, short-term stochastics have now turned negative for the first time since I received a buy signal @ 2.90 a few weeks ago. As an investor, I would begin to add to my position here (which is at the lower end of the channel I described in a previous post) but hope for an opportunity closer to 3 or even slightly below. A close below 2.75 would be very negative, IMO, and is not likely given my confidence in management and company fundamentals.
In addition, down volume is light and we have already seen how quickly PNLK stock responds to news and high up-volume. Again, I would only attempt to use charts and TA as buying guides to add shares. Once PNLK becomes established (reporting and NASDAQ listing), TA will be a far more useful tool. Of course, by that time, I believe PNLK will already be trading at more than triple its current price.
PNLK and its long term investors (us) will simply have to put up with all of the vagaries of the OTC Market for the privilege of having been in on the ground floor before the inevitable wave of "conservative" investors and institutions. Look at long-term charts of MSFT, AOL, AMZN, EBAY, etc. for the BIG picture (we may be the next "WEBMD!"). I am quite content to keep nibbling away at more PNLK as my pocketbook allows and as buying opportunities present themselves---MK---
P.S. BTW, PNLK also stands for ProNet Loves Konrad and my "psychic-psychotic friend" views that as very positive! LOL---MK--- |
