PTIS is definitely moving up. That is what I like about these small cap stocks, they are more prone to defy gravity than the larger cap stock. I thought this stock was giving me contrary signals as it went up its upward wedge!
An investor has to be careful here. IMO there is significant selling pressure into this rise in price given that the volume increased as much as it did. However, there are even more buyers. So there is alot of combined activity. This type of stock is prone to dropping down just as quickly when the buying pressure abates. So it is a matter of which "side" will give up first. This supports your observation that relatively high volume usually comes at extremes with this type of stock.
Trying out my new fangled breakout tracking system , BTS for short, I see this stock continuing its move up from its breakout. So I do not think we have seen the end of this breakout yet. We shall see how well this system does on its test of its third stock, PTIS.
Momentum as defined by the MACD is about to test overhead resistance. If it breaks through this sucessfully, it will be clear sailing for this stock. A divergence is starting to show up in the Stochastics. This usually happens before any weakening of the current uptrend shows up anywhere else. If the momentum stays strong, the end of the current uptrend as indicated by this divergence can be postponed. Also, there has been strong accumulation of this stock with the OBV predicting the upside breakout.
On my limited 2 year chart, I see this is a new high for the stock, and at least a 52-week high. Heck, from what I can see, this stock has been contunuing to move up without looking back. Is this true? It went though a 6 months consolidation phase which it broke out of in the middle of July. This stock does like to "rock and roll"! Despite its gyrations, it has respected its 50 day MA since early May of this year where it broke out on the upside from both its 300 day MA and its 50 day MA under a good surge in volume and quickly established momentum.
So me "stick the neck out" projection for this stock is that the breakout will continue, and then slow up by around Wednesday. At this point, it may consolidate for a couple days and then there is a good possability of it contuing its move up. But I should know more by Wednesday.
Bob Graham |
