Hi Wanelad1, I have my SSN chart drawn almost exactly the same way you have drawn it (see below) - with that bullish channel. Two things to note from me:
1. Support is normally defined on closing prices because prices at close is a stronger indication of buyer commitment than intra-day prices (i.e. in the battle of bulls v bears the bulls regain control at the close).
2. SSN's current support is 0.030 not 0.029 based on the line through the recent series of closing prices.
Therefore today support hasnt been "breached" or "broken" by a close below support, rather it has been "piered" by a intra-day spike (if you can call 0.001 a spike) below 0.030.
What I would say is that the bullish channel has been broken and so is no longer valid, but given the nature of the stock thats not surprising since any bullish trendline will need to be supported by a stream of news events or announcements to keep going at that rate, and with the length of quiet period before the 3 upcoming annoucnements, its stalled within this trading range - not surprising.
Also, its worth commenting on daily volumes. The decline since the last contact with resistance at 0.034 has been an exponential decay curve. If there is a lack of conviction by buyers then its been matched by a lack of selling strength or unwillingness to part with holdings by holders.
All fwiw. At the end of the day, whether or not it oscillates a little lower than 0.030 or a little higher than 0.034 is only a very short term buying or profit-taking opportunity and will be immaterial in comparison to the volumes and SP movement we'll see when news is announced.
Cheers and good luck, Sharks.
SSN Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
