Ann: Conversion of Convertible Notes, page-143

If we close below 51 cents on Friday, it would be a disaster for new investors, opening the floodgates to at least 42 cents.

Logic suggests it happens.

A Friday close below 51 cents would create two negatives technically:

1) Another red candle stick on its daily charts (and that would be 3 in a row).
2) Another red candle stick on the weekly charts (and that would be 5 in a row).

But note the following regardless:

3) As we're well below the 20 and 50 day moving averages now (at 64 and 63 cents respectively) the next logical technical level is the 100 day (at 42 cents).
4) Bollinger Band floor on daily charts is at 43 cents.
5) Momentum indicators are negative and below 0, suggesting buying interest has dissipated.
6) Short interest hit a base on 24th Dec (151,181 open shorts) but seems steadily on the rise again at 30th Dec (178,875).
7) Still no news on assay results from Holes 5 and 6 (it has been a while since they drilled them) will make investors nervous.

So there are seven rational reasons for the share price to collapse.

The only reason for a big rise I can think of, is unexpected and overwhelmingly positive news. But this is unlikely given the history of apparent leaks from this company, so if anything, this new fall suggests bad news is already known by some privy to that information.

To reiterate, a close above 51 cents on Friday is absolutely pivotal, as it would at least negate the trend of weekly closes below the weekly opening price (suggesting sellers are in firm control.)

Perhaps my initial 38 cent base mentioned weeks ago will be valid after all, noting many laughed off that comment as wishful thinking.

Note: My prior posting erroneously stated that today was the deadline for the close below 51 cents - the deadline is actually Friday's close. I apologise for the oversight.