Good afternoon mi amors.
Great wall builders eh? The only walls this stinky OTC looks like it is building is on the ask side of the trade. GWBU which was one of the most heavily promoted stocks in June has shit the bed. Hitting lows of .28 during intraday trading and taking a 50%+ beheading over Friday’s close there is blood on the streets, walls, running down the sewers and a whole lot of panic sellers today.
BUT, can the POS bounce? Usually when a stock takes this big of a hit and goes to the point of it being oversold there is usually a chance for a nice deadcat. Even as I type this the POS is still falling.
GWBU chart: http://stockcharts.com/h-sc/ui?s=gwbu
Let’s get a quick technical update for GWBU. While the chart is not looking very pretty at the moment since GWBU has taken an 85.6% dump from it’s recent glory high of $1.95 to today’s piss poor price of .28, I smell a deadcat bounce on it personally.
GWBU managed to breakdown below many support levels including the 50 and the 200 DMAs, so on the charts GWBU has some support at .28 and a lower level support coming in at .20.
Let’s use the good old Fibonacci method of retracement since this is the method of trading that most tech. traders like to use when they are looking for a deadcat bounce.
Remember kiddies that there is no guarantee that GWBU is going to hit any of these prices but to give you a general gauge of what levels I am eyeing here from GWBU’s high of $1.95 to today’s low of .28:
A 23.6% retracement would be: .67
A 38.2% retracement would be: .92
A 50% retracement would be: $1.12
So can this deadcat bounce? I think it might have a shot since too much money poured into this one and a lot of people that are underwater might start averaging down at these “rock bottom” prices.
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Senorita “Bounce that cat like a superball” Roachita