Good job guys. I've been following the news and people are paying attention, as seen in the Chart (which is simply a pictorial representation of the aggregate activity of all market participants, in response to all known (unknown?) information, no more, no less). Of what people have actually done with real money, not talk.
It appears to have broken the short term downtrend since end of the TH, smashed thru the 50 day EMA (which is now rising...just....since 23 Feb... the
green wavy line ), on heavier volume on an up day than seen in weeks (15 Feb), broken the prior high of 13 Jan (a minor resistance) and even printed an extremely bullish candle, the bulls were in control virtually all day from open to close.
Next pitstop (Resistance) is that unfortunate day when the mkt reopened, the range from the Open of 2.25 to the intra day hi of 2.34. Have to test, and decisively smash through that.
People will have bought then (ostensible "bargain" in insofar as the pre IPO price was 3.41), aka "supply overhang", only to then see it drop by half (from 2.25), and if they're still holding, they'll exercise that human failing called wanting to "break even" (people hate losing money, even more than they love making it), and it may well be met with a kamikaze wave of sellers wanting to get out, break even and so force the price down. This is not tech talk...it's human nature.
Only when those weak hands are shaken out, can the stock continue to rise.
A case could be made that it's now "overbought", and might pause for breath (the middle indicator on the Chart), but a stock can remain overbought (or oversold - as it was, technically, from mid Jan to mid Feb) for longer than one might think.
My own experience over the years is that when there is major news (esp, 2010, and I think Aug. 2013 or 2014), it rises very fast, and violently. Sadly, it then had the bad habit of giving it all away.
But for now, it looks like a good thing, to be on board, and I'd say one can buy with confidence. The (short term) trend is up (the LT trend is very obviously still down), and as they say, the trend is your friend.
V. similar to gold stocks which have experienced a bold surge (front page news), but after a brutal 4+ year bear market. We still don't know when we can say that the L/T trend is (or will be) decisively broken.
But I'd say watch out for that range I mentioned above. The sellers may well want to get out in a rush. If so, make them pay...
Good luck to all who have been patient thru an obviously stressful period.
JMO
(20min delay)
