Just in case anyone is interested in the "black magic" of technical indicators, I've uploaded a file under PHOTOS. It is a screen capture of today's closing share price for SPQ (.12), the OBV (on balance volume - 142,337,280), the RSI (relative strength index - 47.252), and MACD (moving average convergence divergence [-]0.005).
OBV - a depiction of cumulative volume, which is added on UP days and subtracted on DOWN days; divergence with share price may indicate a trend. *** Notice in the last downturn from .23 (Oct. 23) to .12 (today's closing price) the OBV stayed strong. Brakes on the downside were being applied by the market.
Note that volume has been very strong over the past number of weeks. Generally millions of shares have been traded. This stock is very liquid with lots of buying and selling interest. If you have a price point at which you want to get OUT, you probably will be able to sell. (If you're crazy enough to be thinking about this before SPQ gets to $1.00.)
RSI - relates recent activity to past performance: readings above 70 indicate an OVERBOUGHT position and readings below 30 indicate an OVERSOLD position. On Nov. 20th SPQ's RSI was 37.37. On Aug. 20th the RSI was 36.5 and the share price was .03 . Aug. 29th share price was .06 - doubled! Three weeks later - .16! The BETA (volatility - up & down of share price) of SPQ is huge. When the RSI starts to move up, there is an indication (relative to past performance) that there is upside interest by investors.
MACD (blue line) is a little more confusing so I won't discuss it in depth here. However, suffice it to say the crossing through he zero (0) line is considered either bearish or bullish depending on the movement of the stock. You can see that the MACD of SPQ is -0.005. However, it seems to have had an uptick over the last couple of sessions.
From a technical perspective, SPQ is in good shape. The share price has found a "base", and if we see it maintain a price between .10 and .13 for the next few weeks, that's OK. Naturally if it goes up more than .13 that's just fine too. However, maintaining a "base" means (at least to me) that warrants and options have been sold, and that day traders have gone elsewhere.
Should good news emanate from the TDEM survey and/or we get good drill results, SPQ is poised to rise strongly. But remember, SPQ is speculative i.e., we're all betting on good stuff in the ground.
Have a great weekend.
Snug
