ELED old support chart

ELED Chart update

Chart update on ELED

 

First is the chart I posted in the comments a week ago. As we can see the support at the 50-day moving average gave though.

 

The second chart will show an example of how this drop could have been predicted. As you can see on the second chart there was a decline in volume. When a penny stock comes down to a level of support you want to see buying volume start to increase. Buying volume helps power up the support and brings new money in which builds momentum that can push the stock to the next level of resistance. Once a level of support gives fails it becomes resistance. Likewise, once resistance is broken through it then becomes a level of support.

ELED chart

 

As far as the future outlook on ELED chart wise a positive sign would be to see a bounce to .02 with double the average daily volume you have seen over the last week. You would most likely hit resistance at .02 get denied once and need to create a triple bottom at .015 range. If the 3rd bounce off of .015 also had an increase in volume you could see a bounce to .03 and test resistance there. On the flip side, If support at .015 doesn’t hold ELED will most likely come down to support at around .01, most experienced traders would load ELED in the .01-..0115 range and then flip it at resistance around the .014-.015 range.

ELED future support

 

 

Again this is just my opinion. Everyone should make their own buying and selling decisions.

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