Todd, as you know, I'm into Candlestick charting. Here's my take on what the Candlestick charts have shown.
I agree with you that a frying pan bottom has developed and there appears to be a move upward. However, I think that we really have to break this down into short term and long term strategy.
Although we have had a white Marubozu day on Friday, and this is an extremely strong line when considered on its own merits, it is also often either the first part of a bullish continuation or a bearish reversal candle pattern. What gives me pause in the short term is that the stochastics fast line is entering 80, which is overbought territory. Further, RSI is at 80 and anything over 70 is overbought.
It is important to understand that a stock can enter an overbought situation and stay in that overbought situation for some period of time, hence I would suggest for the short term people that they keep a very close watch on PNLK.
For us long termers, OBV indicates that shares are now being accumulated after a long period of distribution. This certainly could drive the price up. However, traditional Candlestick charting would indicate even as a long term player that if a stock has a two gap up day, on the third day it probably would be wise to consider liquidating the position and buying back in three days at a lower price. Of course all this is dependant on price, volume, movement in the coming days. I don't know what the stock is going to do but a gap up could be positive or negative depending on the price action of the day....i.e., if a gap up with a White Opening Marubozu day then we have a very strong signal; if we have a Black Opening Marubozu then we have a bearish signal; if we have a Spinning Top, or Doji day then we have indecision between the bears and the bulls and we will have to wait one more day to determine the trend.
We have gone through a substantial consolidation period and we are trading above the 50 day EMA. This is bullish. It appears we have strong support at $1.50 and resistance at $2.00. If we should break the resistance line look out, we could have a real breakout occurring!!
If you'd like to see the Candlestick chart on PNLK check out:
askresearch.com
=USA&size=640x480&months=6+months&type=Candle&color=Graph+Paper&scale
=Logarithmic&moving=exponential&moving1=50+day&moving2=None&moving3
=None&bollinger=20+day&chart=sto&sto=15-5-5&wpr=12&rsi=8&macd=
12-25-9&roc=16-8&mfi=13
(highlight the whole thing to copy and paste....because I used the "enter" key to shorten this post.....the URL was to big for the screen.)
That's the chart showing the Stochastic...for further analysis click on OBV and hit "GO" then RSI.
This is my technical analysis of PNLK. The only thing that I can guarantee is that it will either go up, down or stay the same. LOL
*whew* that tuckered me out.
Cheers,
Helene |
