PDN Trying to bounce

In the 60 min chart, a 24 day average shown in pink has dictated the the tops in the intraday... we have a nice bullish candle showing up in the chart now, but the top of the candle is testing the 24 day average... 3.80 cents... My own personal buy would have been under 3.70 cents, and I had many opportunities to purchase at that if I was feeling adventurous, but often the best time to buy is after the first 4 hours of the trading day... Considering the robust downside of the MACD and being it is Friday, holding for the weekend is not a risk I'm willing to take considering the broad market sell off for the last 10 trading days. Yup, I said ten days because that's what I have been seeing. I'm waiting for the other indicators to recognize the bounce.

On the open I can visualize a candle with a shadow on top, and a body, and a shadow below.

The open started out 3.68 shadowed down to 3.65 shadowed up to 3.80 so far and now is establishing a body.

We are looking for a ringed bottom in the daily candle. Two days ago the shadow bottom should be higher than yesterday's bottom (shadow), and today's shadow bottom should be higher than yesterday's shadow bottom.



Ringed bottoms indicate at best, short term reversals if they are on the lower bollinger, relative to a long decline.. ringed bottoms can occur before this, and/but a series of ringed bottoms only starts to take on character as it approaches the lower bollinger. The most significant consideration is that when a reversal takes off from a ringed bottom... that ringed bottom is a support reference for a future short or long term consolidation, Ringed bottoms have a tendency to be tested at some point in the relative near future.

Historically most PDN shadow hollow (bullish hollow candle closing up) candles closing a ringed bottom... on the lower bollinger, shadowed down to 50 percent of the body on the next trading day. This presents a buy target so far today for the adventurous of 3.71 cents if it presents itself during the action today, and establishes your downside risk for the open on Monday, and you should buy before the close of today.

Put your bid in for 3.71 cents and keep a tight mental stop. If the ringed bottom doesn't hold, look for more downside and have an exit strategy in mind.

With the broad market sell off and the downward trend... Professional traders are controlling the price... not bullish enthusiasm from stupendous fundamentals. It appears professional trading houses are en mass dumping because they can, and because the market is overbought for the short term.... It is unlikely PDN will put out news that will reverse the trend and global news has been anything but desirable... at best this is just a short bounce and will ultimately test support IMOP based on the overall chart conditions.

Personally, I'm waiting for the support to break... top side bounce is just under 4.20 and if this days close even looks like it will wipe out the hollow candle... I'd sell before the close.

GLTA Lostoutwest
Kenuck SmallCap Trader

National Post

Grandich

StockCharts Public Chart List

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