We were bullish on this stock in 2013, but not nearly enough as it went quite a bit higher than we expected, but we got the direction right. We do not have the brains to create convexity or gamma trade or what ever you want to call it, but we do recognize asymmetric situations and this is definitely one of those. With that I mean that if you win you will probable win more than you would lose if things went against you.

     We have a large A-B-C flat that is a little skewed. It is hitting a bottom connecting line that defines the freedom degree. It has a great EW count with a triangle perfectly positioned as a wave 4- it should therefore return to about $2.60 in the not too distant future. First it should make a new low which was at $1.37. The trendline runs at about $1.20 or a little higher. The RSI, which has been very reliable over years is going to go oversold soon. The MACD is not confirming the new lows. Somewhere between $1.37 and $1,25 this stock is a screaming buy.

    We do warn that this stock may not get to those lows and if it does it may do so just as you are not watching. A limit order for a week or so would be the best course of action.

This is a semi-log scale chart. See also previous blogs. The big picture (not shown ) is very erratic so this is a very tentative interpretation. From the low one would expect – as a minimum – an a-b-c up rebound. We had a furious a, then a long period of consolidation and now the c. The c cannot be over yet. In the worst case we are in a wedge that targets something like $4, in the best case the two legs will become, proportionately, equal at about $5.5 Time will tell.

When this stock closed at $1.46 we warmly recommended it as a buy with a first target of $3.50 (see previous 2 blogs), good for a gain of 140% in less than 3 months. We were wrong again. The stock went to $3,56. Here is the chart;

$3.50 was just a first target based on absolute minimum retracement targets. It now looks like the stock may continue upwards, once a small be is complete at about $2.50, towards $5.5/5.70 or so, the level of the 4th wave of previous degree and a 50% retracement.All of this is very tentative so do use stop loss orders where and when applicable. Good luck.

Three days after we suggested this was a buy, certainly if it went to 80 cents, this stock hit a low and today it has just about doubled on twice the normal volume. There appears to be more potential from here, $3.50 perhaps.