Jack, we have 500,000 shares traded when we took off from 2.50...That is a MAJOR support area...With GPGI, I'd better not say this, we have a wall of protection at 2.50, since our entry points were much lower...So many people expect that when someone recommends a stock that it will zoom instantly...MacDonald Mentality, Have it your way, NOW! Zeev directed me to a stock 2 months ago called XSYS...My entry point was at 3 1/8...I saw the stock go to 2.62 and was ready to throw
a book at Zeev...Well yesterday, XSYS zoomed to 3.50...It has to take out about 1 million shares of resistance at 3.50 and at 4.25, but once cleared its a zoomer to 6.00...Now I am thankful to Zeev...
Anyway, back to our beloved GPGI...The steep upward trendline sits at 2.60...We have no technical damage as long as the stock closes at or above this level...In fact, this would be a good buying area if I was going to day-trade this one...However, I'm in for the long haul on this one...Our major resistance remains at 3.41-3.50...You are correct in your observation about a flag-pennant formation..We have the base of the flagpole at 2.50..The top of the pole presently sits at 3.43...
Add 93 cents to the consolidation area and you get a short-term price objective...Looks like it will be our 2nd attack on 3.50.....Many times it will take stocks 3 attacks on a major resistance area before they manage to plow through it...If Zeev brings back some positive news on the process at GPGI or that they have potential for funding to go into production, that will be the fundamental news this stock is waiting for to take out 3.50.....But I am getting a feeling that Zeev will not be able to divulge as much information as he used to when he returns...He may be getting another new job....
One of my five indicators that I use to follow GPGI turned bearish yesterday....It is the Trix indicator with moving average of Trix...However, I play the percentages and that still makes me a bull..
2) Trendline at 2.60...Above that level...Bullish
3) Di and -di crossover...Bullish
4) Rsi at Bottoms and %d at tops----Bullish
5) MACD....0.1891 by 0.1016.....Bullish....
It looks like the consolidation time is just about finished...The day traders and speculators have licked their short-term chops....If you have an entry point higher than 3.00, if you have some patience, IMHO, your patience will be rewarded....Remember Zeev has an end of year prediction for 10.00....Regards, Mark
P.S. March 3rd High 2.00 Low 1.812 Close 1.875 |
