Hi Friends,As some of you are getting a bit excited due to the...

Hi Friends,

As some of you are getting a bit excited due to the price movements of the last few days, I thought I'd share my views on how I see things.

Attached is a Daily chart with some comments below. Please note that the Weekly chart is far more reliable and it will most likely paint a better picture before the end of the month when the Quarterly report is due.

But for the sake of calming the nerves, I am using the Daily and I hope that I'm not too far wrong.


Now for some comments:

- as you can see from the chart above, there was a breakout, on a pretty substantially increased volume, with the price closing near/ at the top ;

- when this happens, there are a couple of likely possibilities:

1- the price collapses and retraces below the Low of the Breakout bar; or

2- it consolidates before moving on (going up); this consolidation normally consists of the price retracing to test the Low of the Breakout bar, and respecting it. It is an even stronger signal when the price does not retrace to the Low of this Bar. It is also important that the Volume be substantially decreased, as is the case here.

-we can also see that in this case the retracement coincided with the 76/4% Fib retracement level and the price found support at the 10 EMA which has been a very good fit on the Daily for this stock.

Looking at the future, I'd venture say the following:

- it is likely that the price will continue to consolidate above and along the 10 EMA until a breakout takes place and this could very well coincide with the release of the Quarterly report (due at month's end);

- in terms of future projections (using Fib extensions), the next two Targets are 23 cents and then around the 40 cent level.

The stock is showing very good signs and when the Revenue starts too gain traction, it is likely to be exponential, with the share price reflecting that. So don't be too surprised at my Projections; they may very well prove to be on the conservative side.

But let's not get too carried away and take it one development at a time.

Right now the chart is giving a very good signal that the price wants to go up. For that reason alone I'm changing my Sentiment from 'None' (which I have used in the past, to 'Buy'.

Cheers,

soccer