Interesting insight there Funky.I have maintained since we...

Interesting insight there Funky.

I have maintained since we dropped down to 5cents about 3 weeks ago that we need to retest the 5.7-5.9 cent area as support. We fell down through here last time because of some 'panic' in the market, so it will be interesting to see if this level holds up strongly (as it should) in this coming week. There is still movement away from the zero line on the MACD, and the stochastics look like they now want to tread under the 20 mark. Money flow has come off this week which reflects Funky's thoughts that there isn't much buying strength right now.

In my opinion, we need to consolidate between 5.7c and the mid 6s for a few weeks just to put a halt to the overriding selling momentum that has struck this stock so far this year. Once this selling momentum subsides, that is when the big buys will come.

It is very important though that 5.7cents holds, or the unthinkable (i.e. closing the gap at 4.4cents) might not be too far a stretch from the reality.

If 5.7cents holds and we break above 6.8cents in the next leg up, then you would be looking at a new uptrend.

In a nutshell, it really could go either way. I'm not trying to be a fence sitter, but it's a hard one to pick. All I'm going to say though is that trying to pick and choose the bottom on these things if you are a long term investor is like playing with fire. The market will psyche you out, and not allow the stock to trade as you would expect.

In the perfect world we would all sell at 6c and buy back in at 4.4c (if that gap was going to fill), but the lack of volume recently suggests to me that there is very little selling out there right now; we just need some buying momentum to kick in!!