Good Evening. Just wanted to give a quick update on GoIP Global (GOIG) and analysis on how it traded Monday. We saw a strong opening towards the major resistance level of $.015 and similar to what happened last Sept/Oct, we failed miserably. Upon making a move towards $.015, we aggressively sold off.
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We continued to sell-off past support levels of $.012 and settled above support levels of $.011 on the day. The concerning part was the aggressive selling volume from $.015 to $.011 which accounted for nearly 60 million of the shares traded on Monday.
After the aggressive sell-off, we tested support levels frequently and found a new resistance around $.012. The more you test support levels, the more likely you are to break below that level. We did end the day testing resistance around $.012 but couldn’t seem to break past it. I consider closing at $.012 a win for Monday.
Charts can be good indicators of what is to come but they are more of an art form than science. We had a great run and consolidation is healthy after a nice run-up. I’d like to see us accumulate between the $.011 and $.012 range before making a push up but I can’t overlook that if we break below $.011, we might end up moving all the way down to support at $.0095.
Openings have been strong as of late but that may not be good for us to continue that trend on Tuesday morning. If we open strong and don’t break resistance of $.015, we could fall hard once again and $.011 might not break our fall this time. I’d much rather see us accumulate over $.011 to strengthen support before a push up. I’m going to hold some cash reserves and wait to see what happens before I commit more capital to GOIG for the short-term. I always prefer to buy on the way up than predict a bottom as most predictions are irresponsible and wrong made from emotional beliefs rather than any worthwhile analysis. Long-term, my core position is solid and remains intact.
If we do break below $.011, I foresee strong support around $.0095 and anticipate I’d be accumulating heavy in that range, if given the opportunity. However, I think we have a good chance of staying above $.011 tomorrow as selling pressure closer to $.011 was minimal on Monday. If positive news comes out, this could help fuel us north. Since we consolidated a bit on Monday, we are less likely to have a sell-the-news reaction.
In other news, Cord Blood America (CBAI) finally dipped down to support around $.082. Support was very strong at this level and I foresee significant accumulation here before any chance of dipping below these levels. I was a buyer without fear at these levels in anticipation of some positive news soon. Schissler’s hunger for an acquisition makes me believe we could see one shortly.
Get some rest tonight and be ready for a wild opening once again in GOIG. I personally enjoy volatile days with high volume where money can be made so I tend to glue myself to my trading platform to maximize profits most of the day. We had a great time discussing our thesis in the Live Chat so make sure you join us. Do your own homework on these stocks to see if you agree. Good luck out there.
Mike
At the time of publication, Kudrna was Long GOIG and CBAI but positions can change at any time.
