Lonnie.....Check out the technicals. The buying actually started October 14. Nobody noticed. If everyone was selling, we would be at a penny now. Good support at a nickel over the last few weeks. Accumulation/distribution indicator (using 180 days as the time frame) began it's ascent at 500,000 to, now, over, 3,000,000. The actual numbers aren't as important as the direction. And the direction is headed skyward. The stock was collapsing into new lows but underneath the surface, people were accumulating positions, which was indicated by an accumulation-distribution line that refused to follow the price down. The point is, when price diverges from A/D, A/D is pointing the way the price will go. A/D indicator is pointing due north. This is the tip-off that a substantial position has been accumulated and still is. It may be a sucker's rally as Buddy suggested or it may be the real deal. Technicals cannot reveal the rationale behind these movements, only that they are occurring.
Also, Money Flow is following the Acc./Dist. indicator northward confirming that new buying is entering the stock.
Relative Strength has just crossed the midpoint(50) signaling a buy.
MACD lines crossed at the beginning of the week signaling a buy. This indicator has been neutral for some time.
Stochastics lines crossed around November 4th signaling a buy (short and long term).
Momentum indicator is increasing along with a slight increase in On-Balance-Volume.
All in all, the technicals are looking pretty good. Even though the charts are not as reliable dealing with the pennies than the major exchanges, they are a very useful tool in determining the direction of a stock. And the charts are definitely telling me that positions are being accumulated despite all the turmoil surrounding this stock. |
