Noble Iron Inc V.NIR.H

RE: Low volume

[Francesco1]

McGown, I am still here ... Just waiting in the wings for something significant to develop relating to the the stock chart. It really is difficult to apply technical analysis to stock prices unless the underlying fundamentals of the related company and its markets (buisness) are extremely solid. Fundamentals must support a stock chart and its subsequent analysis. There are countless stock charts that refect nothing more than random noise, NIR is not one of these ... It has solid and secure fundamentals that lends itself to analysis. Well, lets take a look at the chart using Elliott wave analysis. First the rally that was completed at the $3.40 high has been effectively corrected by the decline to the recent low at $1.80. In an earlier post I mentioned that we could still see the $1.50 area to complete a more severe correction. This would take us down to the rising 200 day moving average. As time goes on, however, there it is becoming less likely that we will break that recent $1.80 low because as time goes on, the $1.50 area turns into the $1.60 area, which turns into the $1.70 area, etc. Again, due to the rising nature of the 200DMA. From the high at $3.40 there is a clear 3 wave declining pattern on the chart. In Elliot terms three wave declines are all that we need to end the corrective phase of a rally. The 1st wave down from the $3.40 high ended at the $2.00 area. From there, we rallied to the $2.70 area which counts as wave 2. The 3rd wave wave bottomed in the $1.80 area ... so far. This is called an A-B-C zigzag correction. The bottom line is, technically speaking, if the $1.80 area holds we are beginning a rally that will take us first to a new high above $3.40. From there, we should pull back again to the $2.70 area. At which point we would begin a rally phase that would take us to a new all time high above $4.88. Once the above occurs we can look at price projections based on the underlying fundamentals, i.e. sales, earnings, etc ... Francesco