I'm not a big fan of TA in microcaps, TA is based of market psychology generally and there usually isn't enough liquidity in microcaps to allow market psychology to come into play.
Regardless, the mix of strong FA and the setup in the TA at the moment is something I have not come across in many years of investing! It has me so excited for the possibilities and I just want it to be 10a.m tomorrow already so the market can open!
Firstly - The FA at the current stage for this stock is un-freakin-believable as posters have already discussed we are expecting CFDA, FDA, factory completion, first sales and many other milestones to be met in the coming months, this alone makes me want to mortgage the house to buy more!
On top of that the chart looks absolutely primed to explode. What you can see below.
Blue lines: We have just broken and closed outside of a very long term triangle (Generally this leads to increased price action but needs confirmation tomorrow to close outside the triangle again.
Red star: Not only did we close outside the triangle, we crossed and closed above the 100 day moving average which is another very strong TA buy signal.
Blue arrow: Volume was not huge today but it was an increase on what we have seen for several weeks now and the MACD is now trending upwards, if we could close above 36c tomorrow this would confirm convergence between the MACD and SP.
Yellow lines: These are fibonacci retracement lines that lots of TA traders use to time their entry points on stocks. What you can see is that we have been trading (roughly) between the 50% and 61.8% retracement zone which is common when a stock is being 'accumulated' by bigger players after hitting recent highs. Once again a close above 36c tomorrow would be very bullish as it is above the 50% retracement line.
Red arrow (40c): This is where I suspect we will hit next resistance given the Fib retracement, capital raising at 43c and previous resistance/support level. In saying that though, all bets are off if any of the milestones are announced to the market because there are so few shares for sale at the moment that this could spring past that level very quickly and easily.
My final comment: We are absolutely blessed with this stock (I have held and accumulated since IPO and do not plan on selling a single share despite happytraders hilarious down-ramping attempts). The good doc has openly told the market he is not here for 'daytraders' which can be frustrating because daytraders do cause big volatility spikes in the short term, but what I have noticed with this stock over the last few months is the absolute lack of selling despite attempts to scare holders out of shares. This is because the doc has not drip fed meaningless announcements to the market to keep daytraders happy and they have now all moved on, we now have a register which is tighter than 'insert your own profanity here' and it is hilarious watching the bots/'big boys' trying to accumulate a decent holding of shares at these levels because there are simply no sellers, everyone is on board with the company story and wants to hold into the future rather than making a quick 10% like a daytrader. As such, this is truly one of the most unique investment setups I have seen in a long long time in the microcap sector.
This is all just my own opinion and I wish you all the best with your investment decisions but don't take this as financial advice!
Go GMV
GMV Price at posting:
34.0¢ Sentiment: Buy Disclosure: Held
