The spring is starting to coil. , but the process is slowed by the up a few cents, then down a few cents process. Volume is very low, and clearly there is no real strength being demonstrated in any of these moves. Good consolidation requires that a decent amount of shares get owned at a certain level. With just over 20 million shares a day changing hands, the consolidation process may seem low and painful.
The lagging factor is the the 50 day EMA. What we want to see is this number pull up to within 5 cents of the 20 day EMA. Right now that gap is 15 cents. Investors need to pay attention, a coiling spring can let loose at any time given the proper event. The more it is coiled, the bigger the reaction will be. Remember, the goal here is to get a meaningful test of $4.00.
Watch the $3.77 and $3.76 level. This represents the strong support point and the 13 day EMA. We want to hold that level. If it is broken on volume the 20 day EMA becomes the battleground.
Support and Resistance
Exponential Moving Averages