Week 3

Ok here we are again. The end of week 3 and no news a serious attempt to mark up the share price.

The monthly chart with one week to go is building up well & so far confirming the H & S line & $0.11 as support.
The volume is almost as much as the previous months with one week to go & the second doji candle atm is indicating a bottom reversal.
The trading range has so far stayed inside the big green candle of 5 months ago.
I would still consider this to be a bullish rising three candle pattern & I hope to see a higher close than last months by the end of the month but at least $0.14 or higher.

The weekly is also showing some promise with the sp closing above the top parallel for the 4^th consecutive week & potentially going to follow the rising trend line.
The low point at C can now be confirmed as the pivot point low for the purposes of drawing the pitchfork.
The stochastic has now clearly crossed & last week’s low is looking more likely to have been just a final shakeout.
Another up week with the same range would see us back in the circled area & at resistance of $0.14 - $0.15 as it meets up with the down trending lines
If the pitchfork works then there is the expectation that it will swing back to the median line over the coming weeks.

The daily chart is the best it’s looked for some time but we need to be aware that there would have been stale holders & professional selling into the strength of that candle.
Friday’s action saw the sp blast through the upper parallel of the long term down trend line as well as the rising line marked LP1.
The volume was more than 3.5 times the 15 day average, not a bad effort at all.

There were also some interesting events during the week (to me anyway).
The first was the rising volume as the sp approached the dotted blue T2 line on the 16^th & 17^th.
I would like to think that this could have been signalling the higher move up on Friday but that is easy to say in hindsight. There were other indications of a potential change getting closer during the week such as a divergence on both the daily & weekly charts.

The second was how the sp immediately pulled back from the down trend line T1 and closed at the resistance of $0.13. This was also getting close to the T3 line which was calculated after drawing the red pitchfork with 3A as the low pivot point 10 days ago.

What I would like to see next week to finish the month off would be for the close to be above the red median line coming from pivot 1 as this would then confirm the bottom pivot 3A & the red pitchfork as the more relevant one to watch in the short term.

I know the chart looks messy & it is probably easy to say that one could draw lines to make them fit but the lines drawn were done in advance & I now see a reaction of sorts when the sp hits them.
Not all them all the time of course & not always with a great influence but enough to keep me interested.
I will also be watching with interest to see if there is any influence or reaction to the Red T1 line & the approaching T3 lines this coming week
I may be reading too much into Fridays spike but hopefully the sp will gap up through the $0.14 – $0.145 resistance when it opens Monday & close above the red median line.
This would be very bullish

The top of box B is likely to be resistance but a break above that could potentially get us back toward the $0.15 – 0.16 area.
The end of next week will see the sp somewhere along the red vertical line.

On the negative side this week, unless there is news the sp will more than likely pull back & there is also the potential that this may be a P & D.

I don’t really feel that way just now though, the reasons being that this is the first time that the sp has closed above the upper parallel of the down trending pitchfork and also the weekly & daily charts appear to be showing a trend reversal & momentum build up, I think that this is the real deal.

Plus the accumulation from early Jan to the present time while in box B. Something like 9 million shares were accumulated or changed hands at an average price of $0.125 during that time.
So I am guessing that there would be a strong incentive to mark up the sp into the top half of box A above $0.15 to get a return. A 3 cent profit would generate a nice return & still leave a lot to be held for the future.

There will of course be pull backs & consolidations but I believe the tide has turned.

One of the statistics for pitchfork analysis is that the sp will revert back to the median line 80% of the time.
That looks to be easily achievable atm. The red median line is currently sitting just above box B at $0.145 while the blue one is currently up around $0.19.

We may have an interesting week ahead.