ATTENTION & SHAKEOUT 7th sept - 14th Sept
Price bumped from 0.145 to 0.22 to attract retailers to go in. Big Boys shake down the price from 0.22 to 0.15 to wipe out all the weak holders and contra holders.
Stage 1: BASE BUILDING & ACCUMULATION 14th Sept - 2nd Sept ( 12th days)
The stock forms a long horizontal base on the chart. A base is simply a period where the stock moves mostly sideways instead of trending higher or lower. The base forms after a decline in the stock price. The longer the horizontal base the better. A long base will establish a more significant support level, and the ownership of the stock will transfer from weak hands to strong hands.
Stage 2: BREAKOUT, ADVANCING & UPTREND ( 2nd OCT to ?? )
The stock breaks out of the horizontal base and begins advancing over a period of time. The breakout needs to occur on increased volume, otherwise it might not be sustainable.
NOTE: Volume not that significant here... I believe distribution is in progress already
Stage 3: TOPPING & CONSOLIDATION
The stock starts to trend sideways in Stage 3 and lose momentum to the upside. The stock also loses its upward slope and starts moving sideways. The stock will either breakdown into a Stage 4 decline after this stage, or after a consolidation break back into another Stage 2 advance.
Note: On wave count, I believe it hits the peak of wave 3 at 0.32... probably will retrace for wave 4 at 0.26 - 0.28 area before another push ( STAGE 2 ADVANCE AGAIN) for wave 5 at 0.36 to 0.37 area.
You can see -ve divergence on MACD while the pricing is heading higher and higher. The stock showing weakness already!
Stage 4: DOWNTRENDS ( NOT YET HAPPEN but SOON! )
The breakdown marks the start of the stage 4 downtrend, when sellers control price action, often dropping securities to depressed levels unanticipated by optimistic bulls. Disillusionment and loss of faith characterize this uncomfortable period, which can take a long time to work through the system. The stage often begins on high volatility but ends on low volatility because apathy and disinterest have taken their toll, dropping the security’s volume to cyclical lows.
BREAKDOWN of STAGE ANALYSIS
Definitions of the Stages and Sub-stages
Stage 1A Start of a base. Needs much more time.
Stage 1 Basing Phase. May begin accumulation.
Stage 1B Late in base-building phase. Watch for breakout.
Stage 2A Early in uptrend stage. Ideal time to buy aggressively.
Stage 2 Advancing Stage.
Stage 2B Getting late in uptrend.
Stage 3A Looks as if a top is starting to form. Be sure to protect holdings with a close stop.
Stage 3 The Top Area. Start to reduce positions.
Stage 3B Has become increasingly toppy. Use rallies for at least partial selling.
Stage 4A Stock has entered Downtrend Stage. Close out remaining positions.
Stage 4 The Declining Stage. Avoid on the long side.
Stage 4B Late in downtrend. Much too soon to consider buying.
Stage 4B- Although not yet “officially” in Stage 1A, stock has now seen its low for the cycle.
Stage 1A Start of a base. Needs much more time.
Stage 1 Basing Phase. May begin accumulation.
Stage 1B Late in base-building phase. Watch for breakout.
Stage 2A Early in uptrend stage. Ideal time to buy aggressively.
Stage 2 Advancing Stage.
Stage 2B Getting late in uptrend.
Stage 3A Looks as if a top is starting to form. Be sure to protect holdings with a close stop.
Stage 3 The Top Area. Start to reduce positions.
Stage 3B Has become increasingly toppy. Use rallies for at least partial selling.
Stage 4A Stock has entered Downtrend Stage. Close out remaining positions.
Stage 4 The Declining Stage. Avoid on the long side.
Stage 4B Late in downtrend. Much too soon to consider buying.
Stage 4B- Although not yet “officially” in Stage 1A, stock has now seen its low for the cycle.
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