Good Evening. I wanted to get out some thoughts on GoIP Global (GOIG) before Monday opens as I’ve received numerous questions in regards to whether the run is over for now and we should expect consolidation or if it will continue the strong momentum up.
Thursday and Friday were very exciting days for GOIG, to say the least, with very strong volume. I’ve been glued to my computer screen trading around my core position trying to maximize profits. Stocks do not typically move like GOIG has recently but when a stock does move like this, I try to take advantage of it. GOIG has not rested during this recent run-up which has made many wary of joining in and I don’t blame them for feeling that way. I’ve expected consolidation for a while now but I won’t fight the upward momentum and have been running trades throughout the day to lock in these gains. We have a company which hasn’t seen revenues, yet already trading over a penny. While I’m excited, I’m also concerned of momentum dying at the $.015 mark again where GOIG took a nosedive soon thereafter in September/October. For now, the trend is bullish and we can’t fight that just yet. Predicting is typically irresponsible at this juncture, though many will surely do their best impersonation of Nostradamus. If they predict it to go north, others will say how correct they are and new friendships are made. If they predict it will go south, they are immediately hated and called shorts or incompetent. Responsibly speaking for the short-term, we can only react to what happens but if we have strong buying volume Monday morning, we could continue our breakout for yet another day. After a breakout like this, we have to look to the chart for some type of guidance.
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It is important to note that we have some support levels around $.012, $.011, and what looks to be stronger support around $.0095 range. If we were to move below $.0095, I’d start to be skeptical of the move up which started Thursday morning. Thursday started the move around $.007 so if we were to break below that, this move up may have been more short-term traders than long-term investors. If we break below the support around $.0095, I’d expect us to break below $.007 as well before reaching strong support. While this would be painful to some, I’d happily look to acquire more shares at cheap prices by reinvesting my newly acquired profits. We broke the $.012 support on Friday briefly before support at $.011 kicked in and boosted us back over $.012 for the rest of the trading session. I don’t know what to expect on Monday just yet but a pullback is a concern of mine as I’d prefer to lock in more gains at these levels before we do so. Than when we do consolidate, I’ll have fresh capital to reinvest as my bullish thesis is still intact as of tonight. We have made some impressive gains for this speculative stock and while I believe in it long-term, it is still a risky speculative play in the meantime.
If I was buying for the first time, I’d first determine if I was in this long-term or short-term. If this is a long-term investment, I’d be content buying at these prices but would still buy in increments to make sure I do it responsibly. If this is short-term, I’d still make sure to buy in increments. I don’t know how strong the support is at $.011 and $.012 just yet but $.095 appears strong.
We couldn’t break resistance of $.014 on Friday which could be achieved with well-rested bulls on Monday. However, we still have $.015 as a resistance from late last year and that could be the point we hit before consolidation. After gains like this, I have a “protect my capital” mentality so I want to make sure I don’t lose all the gains we’ve worked so hard to acquire. I’ll be ready to react to whichever direction we go on Monday and I suggest you join us in the Live Chat to talk details. It is near impossible to write articles during the day and effectively trade such a highly volatile stock like GOIG when it moves like this. As always, do your own homework to see if you agree and I’ll see you in the Live Chat come morning. Good luck out there.
Mike
At the time of publication, Kudrna was Long GOIG but positions can change at any time.
