I have not seen any charts/TA posted on this stock so here is my take.
If you have seen my other posts, this one is no different. I'm timing a buy on this stock, and I focus on risk and my tolerance with a generous stop loss so please do the same before just monkeying in.
Context: Price has pretty much been in a long-term down trend since inception, topping at $4. However, since mid 2011 trading at 30c, the down trend has been incredibly flat. A slow grind down to where it is today.
In the past 6 months, price has ranged between 2.6-3.6, consolidating tighter as time goes by.
Charts: Pattern traders can see that the range is also a symmetric triangle/pennant formation, and since the previous swing was a down swing from 5c to 2.5c (Oct 2015 - Dec 2015), it is highly likely that a break of this consolidation pattern will lead to a continuation, i.e. a continuation down lower!
So the break took place late May, trading as low as 2.6. Did it break strong? Nope. Did sellers start bailing out? Did stops get triggered? No and no.
31st May presented a strong rally with above average volume. The break out had no follow through and was a false break.
Trigger: As above, the sell down was potentially a bear trap/tree shaker. Traps are high probability setups and are very often great for timing a strong move the other way.
Depth: Currently 6 bid to 1 ask, heavily bid. Exclude the deep nanocap bids (0.001 & 0.002 and you'll still get 3 to 1)
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