1) A tweezer bottom occurs when the price holds twice at the exact price. The time frame can be on two consecutive days or up to around eight, any more than this and you would be looking at a double bottom formation. This formation is significant because twice in a short period of time sellers were unable to push the stock lower. Therefore, tweezers basically signify a very short-term support level.
2) Tweezers sometimes occur on two consecutive trading sessions. In these cases they are relatively easy to spot. However, they can also occur several sessions apart -- say six or eight. (If they are spread further apart than that, then the formation is beginning to approach the double bottom or top described above.) When the tweezers occur consecutively their forecasting value generally increases. Why? Well, in these cases a bearish move has been absolutely stopped in its tracks and is more likely to REVERSE.
From a recent high of just over 9 cents over a week ago, it went down TWICE to 5.9 cents....that is yesterday and today.....this is where the tweezer bottom comes in.
It is something worth watching as the momentum might just have reversed as I see it of course. RSI is 43 and stochastics is below 20....meaning not overbought.
BUT BUT BUT....if ESI fails to go up and instead goes back to 5.9 cents and falls further then it's TIMBER!!!!
ESI Price at posting:
6.8¢ Sentiment: None Disclosure: Held
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