We are seeing classic consolidation here. The good news is that it is happening in the $3.70's. The bad news is that the support levels below are still in flux, and the strongest support below at the moment (that is near) is at $3.51. In order to see that support move up, we need to see the 50 Day EMA move up. Right now the 50 day EMA is at exactly $3.51.
Essentially the 50 day EMA is gaining a penny a day. In another week it will be approaching $3.60. If we continue to trade between $3.68 and $3.75 during that period we will have substantially narrowed the gap between not only the successive EMA's , but the 50 day and the 5 day as well. In about 1 to 2 weeks, if consolidation continues, the equity will set up to run or to correct down. That sounds like I am uncommitted, but the reality is that the technicals at that point will dictate what transpires. For the moment the key is watching the consolidation and watching for the EMA contraction.
Support and Resistance
Exponential Moving Averages