Although TA is less effective with penny stocks, some aspects of TA may be utilized in order to reveal some measure of foresight to a stock’s potential trend whether it be upward or downward. This is my take on recent activities, comments are welcome.

Although we sustained three down days in a row after the run up to .75...(three black crow pattern, bearish reversal pattern to the run up), the candlesticks reveal something rather unique the last two days of trading. Two inverted hammers have revealed themselves, one of which is in the morning star position. This to me is a bullish reversal pattern that offsets the aforementioned three black crows. The remainder of the week of trading will reveal more.

MACD is weaking but keep in mind that the SP is approaching an oversold position. If volume remains low (longs holding and no warrants converted) MACD should strengthen. The 50 dma has broken it’s downtrend with 2 recent small step changes higher (though very minor...still presents bullish trend). RSI remains relatively strong in the 50 range.

Bollinger Bands say it best. The current upward trend has caused both upper and lower bands to react and converge in unison rather than gapping (i.e. a SP spike resulting in the upper band gapping higher while lower band gaps lower). Current trend indicates that SP is riding the upper band while the lover band follows upward movement thus creating a decrease in volitility trading range. If PTSC were still in a downward trend the lower band would have turned downward while the upper band turns upward, thus creating broad volatility ranges for the sp to bounce off the upper band back to the lower band and thus lower SP range. The lower band’s tendency to climb upward on days in which SP dips is a strong indicator for continued uptrend.

I am looking for early morning dip...wouldn’t be surprised to see .58 or .56. MM’s will try to steal some shares. SP will return to either finish even for the day or maybe up .02 with bulls winning the day. If the day plays out in this fashion, it will be the beginning of a very bullish run over the next 3- 4 weeks. Couple this upward pattern with a little news and we could see the dollar range once again with the possibility of trading in the dollar range. However, on the down side, if support at .60 fails, look for SP to channel between .50-.60 until Markman or J2 settlements.

Disclaimer - This is pure speculation on my part so please do your own research.

GLTA

Pawn X Pawn