bullish chart underway

Hi Everyone,

I dont know how to post a chart but I will give you my views after many, many years as a full-time (yes stay at home trader)trend trader: (I hope you find this post useful)

Firstly:

1. Forget the traders. Their use is in providing liquidity
2. All we are experiencing at the moment is a pullback, which is the very BACKBONE of a healthy uptrend. It doesnt take a rocket scientist to understand that price action cannot increase EVERYDAY so I dont understand the disappointment of some people when a stock has doubled in a week then pullback to its mean (average) linear line of least resistance.

Now to the chart:

DAILY CHART

a. The trend is most definately up. Price action can back that up with substantial evidence:

i) Recent resistance of 5.8c has been broken. AT WORST the support after such a consolidation will should be here. But that is a worst case scenario.
ii)It will be most likely be, however, that a pullback like today could possibly see a bottom of between 6.8c and 7.3c which are Fibonacci Retracement Zones. This is by no means a signal to sell as it might not get that far so its a very risk play trying to sell into the price strength we have seen in recent days
iii) A large series of Longer Term moving averages have definately given a buy signal with every one of them trending up.
iv) MACD is showing increasing strength
v) Bollinger Bands have widened suggesting the makings of an uptrend
vi)Stochastics are in bullish territory. Although it is seen in Overbought Territory, this in itself is a bullish signal as the longer term of moving averages are ALL up. So even if the stochastics does move down, it shouldnt be a prolonged effect
vii) The 10, 20 and 50 day moving averages have crossed so as a trend trading break out trade, the signal to buy is now

WEEKLY CHART

We need more development here. HOWEVER:

i) the 10 WEEK Exponential Moving Average (EMA) is very close to crossing the 20 week EMA. If this happens, then be prepared for it to shoot to the 50 EMA which is currently at 30c.
ii) The WEEKLY stochastic is UP UP and UP
iii) The flow of money into the stoch even when the stock was sitting at 3-4c back in March was increasing, suggesting stealth accumulation. I use a very unique model for this particular approach and is not readily available on most charting packages.

I can go on for a while discussing other facets of the stock. But anyway...

I like it, and I like it alot. Let the stock breathe a bit. Let it pullback. Dont be alarmed when she falls the way it did today. Its natural progression. Ive seen this many times before.

And I will trade this stock like I have (and currently LONG) stocks like PNA, BMN, WOR and WES to name a few.

I hope this helps anyone interested in how the chart reads. One word - FANTASTIC. Im expecting a 11-13c price within 3 weeks. BE PATIENT.

Cheers
Babylon
(Pardon any spelling errors)

WEEKLY CHART