Looking at this week’s chart it seems like it is at a defining moment in the current pattern.
The week’ action has done pretty much what I was hoping for in the absence of a big announcement.
It remained in the top half of the box 6 price range, support held at $0.14 until late Friday afternoon and volume for the week was 23% less than the previous week and the continuation pattern formed by the big green candles of the previous two weeks since the low is still intact.
Looking at the daily chart it looks like we are at the point of convergence I mentioned before but expected early next week instead of Friday.
That is, the sp now at $0.135 is sitting in the center of the box and on the converging trend and support lines which I believe are significant to this particular stage of the current pattern.
My feelings on Friday’s action was that initially the market was happy to wait & hold but that at the end someone decided to try to scare out a few weak hands.
Friday’s volume was particularly low all day until the washout after the close with 70 or so % of trades happening after the close.
It does not have the feel of the start of a major sell off but that’s not to say that a sell off won’t happen.
As always this stock is manipulated and this may well be the start of a move to flush a few nervous holders out due to the lack of news. I don't see it testing the lows again though $0.115 - 12 is a possibility.
Most long term holders will continue to hold but this is a great trading stock so everyone should continue to expect some volatile price movements until the “deals” are signed & announced.
Good luck, be patient.
PSY Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
