The good part of the story

As I have said in my previous post that the stocks story is not that all bad news.

Ill try to enumerate the little positive things that can be seen on the chart.

1. It might have reached its bottom.
According to the chart, this stock has formed a descending triangle(right triangle). You can see in the chart a blue line sloping downwards from the middle of Sept to Dec and a horizontal line at 0.17 level. Both line forms the descending triangle. Based on technical analysis, the descending triangle suggests a bearish movement. A lot of holders are selling at lower prices, while the demand stays the same. It would come to a time when the market is swamped with sellers at a lower than low price making a break down of prices. This is what happened last Dec 12, when the price brokedown the demand line. As technical analysis suggests, this downward movement would continue up until a comfortable price level where most buyers would come in and start buyng again. This level was forcasted (see the blue dotted lines) at 0.10 level. And true enough, the downward movement stopped at that level. From that level prices has again started to move up which means buyers are now willing to buy up the price of the stock. Thats just one of the good news.

2. Its MACD line has already crossed the signal line.
Check the line graph above the chart, as you can see there are 2 lines criss-crossing each other. The blue line is an MACD line while the red dotted line is signal line. A blue line crossing above the red line means that the stock is now on the upbeat and futher confirms that buyers are starting to come in the picture. This is evidenced by the price of the stock rising which means they are willing to buy up the stock price. Demand is starting to pickup. Good news number 2

3. Volume is slowly increasing.
The average volume for this stock is around 1M shares traded. As of Jan 12, 2006. Volume was at about 800T shares traded, this means a lot are starting to buy this stock. Hopefully this increase in volume would mean also increase in price.

Next post....What is keeping this stock from appreciating?