RE:We seem to have a solid wall at 6.5 cents! It isn't really a strategy in play, but a simple element of supply verses demand.
There is just not enough pressure put on the price to move it above .07 and their algorithms are showing that the support level is .06-.065 with a bottom support level at the extreme to be .055. So what they are doing is taking out the .06 and allowing the MMs to facilitate the .065 and it wouldn't surprise me if they allowed at times when we did see .07 allow them to reel in .065, but that is more of a measure to anticipate a false reading.
The week we had strong volume and it hit .07 they knew they would get squeezed, but when volume tapered off they went back to their normal pattern, but with the acknowledgement that the support level of .06 and .065 would hold and allow them to ping-pong and continue to take out the bottom for the next run.
Now what we have to contend with is the volume that went off at .065 and they know as well that the potential run will be in controlled since the support at level .06 and .065 is going to be the next range to fall.
In other words, the run may not be as dramatic since they have plenty of sellers in this range.
The strength on the news will determine the spike, but remember, the current level is support and depending the spike at the open will determine if they move back to this level which is known in the trading industry as "Back filling". This is the hallmark of the Market Maker, play the spread.
One reason why never hold beyond the 3-day run and take profits just before the 3rd day. This is known as the 3 day rule. This applies mostly to the pinks, but many times can be used on issues that have decent runs, because there is always a settling or fallback to a higher support level and then the process begins again.
The .07 for us is resistance and the support is .06. We now need volume and if we break .07 on volume then the run will begin, but I expect this interval to augment with news.
See this is what makes trading in the pinky arcade a extremely difficult venture and why most folks lose their shirts.
Have a good day
varok