19-Mar-2024 : Keeping It Simple with Price Action & Technical...

19-Mar-2024 : Keeping It Simple with Price Action & Technical Analysis..

This has been a very satisfying thread for me... Catching the entry early on at 21c, taking the ride up, making some good profit on the way.
And now, time has come for a repost, as I can see something brewing again on the charts...
So one more time for a "What's Cooking.." Post update...
Sparc - 11-Oct-2023 What's Cooking Post
This is a penny stock... very risky. I own this and my opinion although is objective, may be biased and may have mistakes. So DYOR..

Daily chart since around Sep-2023... Refer to the pointers as marked on the chart below.
* The stock crossed a short term immediate resistance zone at around 24c in Nov'23, retested that successfully in Dec-Jan, and then moved to make a high of around 42 c.
* Since that high in mid-Jan'24, it has been in a down-trend.
* The stock is now AGAIN at the same SPPORT zone, that it has tested successfully, and is starting to show resilience.

How ?

(A) Check the points A on the chart and RSI. The price has remained almost at the same level, however RSI has made a bullish divergence, and also crossed its Moving Average and inching towards 50. It would be critical to see it crossing 50 in next few days which will confirm the reversal.

(B) & (C) In a down-trend, that big RED candle at the bottom near the support zone, and that HUGE volume was a clear signal of a "What's Cooking" event. If you look at the volume on days preceding that RED BIG candle, the volume was almost NIL, meaning there were almost no sellers at the dropping prices. Buyers who had held, wanted to stay put.. and there may have been many stop-losses just below that support level. That HUGE volume was there to break and hunt those stock holders who had a stop-loss just around that level. Sorry fellas.. YOU GOT HUNTED.

Now changes are higher for the price now to retrace back to that immediate resistance at 34c, and would be interesting to see how it holds up there..

Happy Cooking...