Thanks all for the words of support who appreciated my analysis on the stock. As stated it's meant to be based on an unemotional reading of the price action (though I might come off as too emotional when its questioned...will just focus on TA going forward and not repsond to non-TA based responses).
Assuming this is the selling climax and start of an accumulation you wait for the stock to have a sharp rally off the oversold selling climax, this is called the automatic reaction because the buying replaces the selling, then it hits a point where new supply comes in and starts being sold. The highest price point is the AR where in the new trading range supply will usually come in, off that there should be a secondary test of demand to confirm if that is the new demand level, if it isn't then stock will make a new low (possibly be the actual selling climax). Eventually there should be an upthrust that could go beyond the AR but the highs of the upthrust would mark the top of the trading range where it will fail each time it is tested until the stock is accumulated. Key price action to watch for include if sell down attempts fail and are quickly bought back up (aka springs). There's really no rush to buy because accumulations will often give you multiple points to buy the lows and its better to wait for a price point to be a confirmed demand. The price action should also look different the volatility of the prior distribution zone because in this case the CO should be absorbing stock which makes the upthrusts slow as it absorbs selling rather than quick upthrusts across 1/2 days that then get sold off. Price action should look soething like the below set up.
NEA Price at posting:
$1.78 Sentiment: Hold Disclosure: Not Held
