What's keeping it from appreciating?

So we've looked upon the positive side of the story. So whats keeping the good side of the story from being realized?

A couple of things are blocking the way:

1. Resistance Lines

Resistance lines are areas of Major Supply. These are lines where selling is greatest. A couple of resistance lines are blocking the way for the price to further appreciate. At the following price levels you may enounter heavy selling: 0.12, 0.15, 0.17. These are just some of the resistance lines that can be easily identified.
You might ask why are those price levels blocking the appreciation of the stock price? The simple aswer is that many may have bought at those levels. So if most holders bought at those levels, there is a possibility that they might want to sell at the same price and just absorb the transaction costs.
Why would they want to sell at that level when it is clear that prices are starting to rise? Many factors may influence the holders of this stock to sell at that level and not wait for the stock to appreciate further. One reason is that they got severely burned by the drop in prices that they just want to be out of the stock at an acceptable level of loss.

2. Liquidity problem

As I have mentioned in my earlier post, this stock is not that liquid. Meaning there is not much shares being traded. Lack of number of tradeable shares means lack of players and a lack on the number of possible buyers of the stock.

3. Lack of positive news

The last bad news that came out last Dec gave a hard blow on the price of the stock. It needs a positive news like the one announced last Sept. So expect positive or negative news to come out during the quarterly reporting of financial statements.

And so thats it....never imagined it would be a 4 part posting. Whew!

My last recommendation is that, if you dont have patience better get out of this stock. But also, many rewards might await for those who are patient. Hehehe im trying to be the angel and the devil at the same time =p. But then again, its up to you on how risk averse you are.

My last general warning: Play the stock market only with money you can afford to loose.