The stock was considered dead last 05 December 2017. There was no price range; it was flat @ 0.1850 and the volume was just 10k.
Prior to 14 December 2017, except for that rare volume of 1.3Msh on 19 September, the range was between as low as 10ksh and as high as 390ksh. Since 14 December as a result of 3rd telco play, this stock soared from tens to hundreds of thousands of shares in volume in a day to million of shares.
Since then, it's difficult to track the buy signal of this stock if one has to depend on price tightness and volume dry up. The lowest volume of 2.1M shares happened twice, 26 May & 28 June this year.
Just recently, the stock traded with above average volume for 4 down days, September 5, 6, 10, & 11. Ordinarily, this is taken as a warning. However, from 12 to 14 September, the stock seems to refuse to revisit 0.51, its 100 day MA. And in fact, it even closed with a doji last Friday.
How are we going to interpret this price action? Is it a reliable bullish set up?
Last 31 August, the stock appeared to form a VCP pattern. It seems that all the ingredients were there. There was price tightness, there were two shakeout, and there were also two contractions from greater to lesser volume. However, the pattern was a trap. Instead of resuming its uptrend, the stock dropped from 0.67 down to 0.55 in just 5 days with above average volume.
I think using price tightness and volume dry up as parameters to buy this stock are inapplicable. If we will take the doji last Friday as bullish, remember that the price range is still relatively wide, 0.56 to 0.59; and volume is still high at 11.9Msh. During previous rallies, prices are not so tight and volumes did not dry up. Observe the following notes:
Price Range Volume
01 August - 0.52 to 0.56. 61.9Msh
11 July - 0.4450 to 0.4550 4.6Msh
24 May - 0.42 to 0.44. 14Msh
30 April - 0.4150 to 0.44 11.5Msh
13 March - 0.50 to 0.52. 13.6 Msh
I think a more reliable buy signal has to consider the following:
1. Wait for weekly chart to paint a morning star.
2. Wait for the stock to return above both its 20 and 50 day MA, 0.64 & 0.60.
3. Though seem inapplicable, observe price range to close a little bit and the volume to lower at least between 5 to 10Msh.
Prior to 14 December 2017, except for that rare volume of 1.3Msh on 19 September, the range was between as low as 10ksh and as high as 390ksh. Since 14 December as a result of 3rd telco play, this stock soared from tens to hundreds of thousands of shares in volume in a day to million of shares.
Since then, it's difficult to track the buy signal of this stock if one has to depend on price tightness and volume dry up. The lowest volume of 2.1M shares happened twice, 26 May & 28 June this year.
Just recently, the stock traded with above average volume for 4 down days, September 5, 6, 10, & 11. Ordinarily, this is taken as a warning. However, from 12 to 14 September, the stock seems to refuse to revisit 0.51, its 100 day MA. And in fact, it even closed with a doji last Friday.
How are we going to interpret this price action? Is it a reliable bullish set up?
Last 31 August, the stock appeared to form a VCP pattern. It seems that all the ingredients were there. There was price tightness, there were two shakeout, and there were also two contractions from greater to lesser volume. However, the pattern was a trap. Instead of resuming its uptrend, the stock dropped from 0.67 down to 0.55 in just 5 days with above average volume.
I think using price tightness and volume dry up as parameters to buy this stock are inapplicable. If we will take the doji last Friday as bullish, remember that the price range is still relatively wide, 0.56 to 0.59; and volume is still high at 11.9Msh. During previous rallies, prices are not so tight and volumes did not dry up. Observe the following notes:
Price Range Volume
01 August - 0.52 to 0.56. 61.9Msh
11 July - 0.4450 to 0.4550 4.6Msh
24 May - 0.42 to 0.44. 14Msh
30 April - 0.4150 to 0.44 11.5Msh
13 March - 0.50 to 0.52. 13.6 Msh
I think a more reliable buy signal has to consider the following:
1. Wait for weekly chart to paint a morning star.
2. Wait for the stock to return above both its 20 and 50 day MA, 0.64 & 0.60.
3. Though seem inapplicable, observe price range to close a little bit and the volume to lower at least between 5 to 10Msh.
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