For TA fans only - two months pullback and now the.... Mounting buying pressure and new capital started to come back as early as the beginning of this week projects the 0.38 (as mentioned in attached post) will be taken out next week. No fear of the overbought in Technical as the momentum is back in time per my email to my mailing list. We need the trend to establish on solid ground. We have already risen 40% from 0.26 and some minor rebalances along the way is healthy inflicting no technical damage. Here are the important levels to watch for the traders while the longs need not care about:
0.38 for breakout
0.40 should be taken in a short time
0.43 is a resistance
0.48 will take a bit of good news to breach
For TA fans only - time to prepare for a pullback
The momentum is good and the volume is encouraging. This morning PHM achieved all I mentioned yesterday- a straight rise and touches $0.38, a resistance level also mentioned in my post and immediately came back down. Momentum regrouped and tried again later and no obvious success.
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Eventually this resistance level will be broken and we will see higher price. But at the moment the almost straight line recovery bearing a more than 35% gain from the bottom may not be able to thrust through this level. If that is the case, the technical rebound will pause and a meaningful pullback is coming. This will provide a good chance to get in before the next rise. Whether you trade or hold for the longer term it remains a personal choice. The trend changed since the stock bottomed at the bear bone book value of $0.275.