SMB forming a Inside Day today, The tail end of the sellers...

SMB forming a Inside Day today, The tail end of the sellers turning over to brand new hands, As long as support above 25c holds (the strongest area of support) the sellers will be all churned out and the price will recover because the new holders will hold until they come into profit before selling, the Potential buyers will out weigh the remaining sellers... I see this happen over and over again, its a very solid short term (2-6 day) set up(especially when a gap down is involved). If 26c holds strong (current support) worst case scenario is the price drifts sideways for a period of weeks before recovering this happens in less than 20% of cases in my experience, in most cases there will be a fast paced v shaped recovery leading to price collapse against resistance, followed by continuation of the medium term down trend. This is one of the lowest risk setups you can find in my opinion, currently at 27.5c you risk is only 1.5c. Great risk/reward ratio awesome win/loss ratio of around 75%. Conservative traders will take the Break above the high of the Inside day as their buy signal.

AA