Here’s our current watchlist for the week of 2/25/2019.
Traders: $BRKK $LEAS
Long Growth: $NGTF $PHGRF
Momo Watch: $HDII $CRSM
Let’s talk about $LEAS. Friday it set a new yearly high of $0.0028 and has been experiencing healthy, consistent growth largely because of one simple fact. The MMs are not selling, which indicates that all dilution has been turned off for the time being. Why, you might ask? We’ll get to the fundamentals here shortly, but first let’s look at some charts.
Allow me to illustrate what I mean by healthy growth.
Item 1 – The moment news of their updated transfer agent and share structure hit the wire, early pioneers loaded up and created an overbought situation.
Item 2 – Selling stopped but demand continued. You can see that the hard correction on the backside of item 1’s RSI (illustrated above) did not result in a reduced PPS. Instead it created something that resembled a flag setup. However the following buying curve once again resulted in an overbought situation, and this time the RSI reset did normalize the share price. However, this move succeeded in establishing a higher support level, and the trend continued upward.
Item 3 – This is where it gets fun, and is indicative that something more, something potentially very big is just beyond the horizon. This area of the chart is where the MMs really took control, and as they negotiated their positions the price slowly crept higher and higher. You can see that the stock’s growth was balanced with plenty of traders taking profits along the way, but despite the profit taking demand pressure continued to push the price forward. Even though we saw considerable price appreciation, the RSI never traveled into overbought territory. This indicator is strengthened by Friday’s late afternoon sell-off when the RSI plummeted into oversold territory, yet the price sustained its higher support levels.
This week was short, only consisting of four trading sessions and the sell-off Friday was somewhat expected. There are plenty of traders who do not allow themselves to hold over the weekend. Plus, the stock has seen substantial growth over the last few days and profit taking should be expected. It’s how profits are taken that impact the stock’s performance.
With $LEAS we have seen steady consistent growth which indicates that the prices are fairly stable at this point. We saw the RSI reset Friday afternoon, and as expected a higher support level was created at $0.0022.
There are also two significant bullish indicators that lead me to believe that $LEAS still has much more in the tank.
Item 1 – Notice the volume, where we see consistent buying behavior and persistent spikes in demand. Even as we endured wave one of the late afternoon correction there was an overwhelming willingness to buy and the price recovered 4 basis points rather quickly, only to encounter the third correction wave which took the PPS down to $0.0017.
This price was obviously viewed as a bargain because the very next move was damn near a full engulfing candle. Demand never faltered and the stock moved back up to a solid support price of $0.0022 instantly. You can see a healthy green spike in volume at the very end of the day which sets us up for a very bullish week ahead.
Now let’s dig into some fundamentals.
The company is in the process of updating their OTC markets profile and having the stop sign removed from their listing. Right now, the company isn’t officially allowed to communicate valuable information to their shareholders because of their non-current status, but all of that is about to change.
If you haven’t already, take time to read Thursday’s article that contained valuable DD and email correspondence from $LEAS.
Shareholders received notice from the company Friday via twitter that $LEAS would be granted access to their OTC account come Monday February the 25th, and they could then begin updating their profile.
Once their profile is updated and approved, they can then begin sharing information about the company’s recent developments.
So here’s the play.
$LEAS’s share structure is spectacular with ~700MM shares outstanding, and there is no visible dilution occurring at this time.
Knowing that news is just around the corner, investors are trying to accumulate as many shares as they can at these sub penny levels and the rise in demand has caused the price to appreciate. Conceptually it’s very simple.
The excitement stems from how even the slightest bump in revenues will have a dramatic impact on the PPS due to their advantageous share structure. Much of the float is locked up and it doesn’t appear that many of the MM’s are actively selling.
To put things in perspective. If we see a reverse merger and the company starts showing $5MM in revenues, then logically we could assume a targeted market capitalization of $5MM. Even with such a modest outlook we’re still talking about 300% gains, and that gets people excited!!!
News is expected to drop next week as $LEAS continues to clear up the murky waters and reveal recent developments to eagerly awaiting shareholders. Until then traders are expected to keep jockeying for position, because when press hits the wire it’s going to be off to the races.
BRK Inc. has a VERY interesting chart with multiple indicators and patterns that can help to understand its movements. Take a look…
Item 1 – An obvious head and shoulders pattern with a three wave Elliot correction on the backside of the head (indicated above by the line in the oval). If you haven’t read up on Elliot Wave Theory follow the link and take time to do so now. The base of the correction resulted in the right side shoulder, which then induced another three wave correction.
Item 2 – Another three wave correction indicated above by the downward trend line. Most important aspect of Elliot Wave Theory is understanding patterns so you can try to predict when the pattern will end. In this case we saw the correction wave and could feasibly guess it’s conclusion, which brings us to item three.
Item 3 – An upward trend. Starting with the graph, line 3 shows us that the stock has once again started to create higher lows, and resemble those stair step patterns we love so much. What makes this indicator even stronger is the upward trend resulted from very low volume. This tells me that there is not a lot of selling occurring and everyone is holding on tight. Also, even though the price has once again started to appreciate, there has been very little effect on the RSI because of the lower than average volume. This indicates that there is still much more room for growth.
Going into next week, $BRKK is on high watch status. This ticker could be a very viable trader and I beleive there is money to be made.
$NGTF $HDII $CRSM $SGMD $HIPH $PHGRF $AITX and $GCGX are just a few tickers that should be on your watchlist. We are tracking their development very closely and will be reporting if/when there are significant changes to their sentiment.
Thanks for reading and be sure to follow us on twitter @themoneyshire.
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