Although price is trading in an up channel, the upper end of the channel is showing some profit taking.
This immediate order flow is providing the downward force which looks to target the $6 range, if at least
to test the lower boundaries of the channel. Notice the time that the previous retracement in 2011
smacked this stock for a 61% sell off before rallying much higher. This can be expected over the coming
months and thus giving traders ample time to prepare for the buying opportunity around $6. Risk can
be limited by exiting if the upward channel is broken to the downside. Even if that happens it looks like
the long term holders may try to defend the $3 level suggesting the better long term opportunity.
This immediate order flow is providing the downward force which looks to target the $6 range, if at least
to test the lower boundaries of the channel. Notice the time that the previous retracement in 2011
smacked this stock for a 61% sell off before rallying much higher. This can be expected over the coming
months and thus giving traders ample time to prepare for the buying opportunity around $6. Risk can
be limited by exiting if the upward channel is broken to the downside. Even if that happens it looks like
the long term holders may try to defend the $3 level suggesting the better long term opportunity.