I don't consider the price movement from yesterday a bad day at all, quite the opposite in fact.. Im away from usual charting tools and laptop at the moment but at a guess on a weekly chart I'd say this is slowing starting to look fairly good. technically.
Though keeping in mind imho technical analysis on penny stocks is weak until they start to build up a longer history of sound financial results and the SP moves on value rather than wild fluctuations on news announcements..
Unless your short term trading the stock the last thing you want to see as an investor is wild SP fluctuations. As an investor at this level I'll always technically work from a weekly chart, look for a stock that's consolidating for a long period within a bracket in this case 50-55c the longer NEA trades in this range the better as it will build up a strong support level possibly for another move up and so on.
Wild fluctuations on news announcements are not good, slow and steady wins the day long term.
Jesse Livermore covers SP action like this well during discussion in his books, also there is Darvas box theory but I'm not totally convinced on that one.
As an investor the worst thing you can do is look at intraday or daily charts, only refer to weekly charts, unless your a trader there is no reason at all to follow the SP daily. My longest running investments I only look at them maybe once a month some hardly ever at all..
Kat.
NEA Price at posting:
57.0¢ Sentiment: None Disclosure: Not Held
