Understanding the big picture on TECO uptrend
Next weekend kicks off the football season for my beloved Texas Longhorns in a home opener against Wyoming. I will not be going to the game, but will be watching it at a bar with some alumni. One of the disadvantages of watching football on TV as opposed to in person is that you do not get to see the entire field. This reduces your ability to watch as plays develop and makes you rely upon the announcers and the piecing together of various camera angles which are good, but no substitute to being there in person.
The same can be said about watching only 1 time frame of a stock. I have multiple screens showing multiple charts on multiple time frames. Doing so gives me a perspective on whether there is a likely change in trend or merely a temporary deviation. Of the 43 penny stock oil companies I monitor, only 5 are trading above their 50 week moving average, Teco included. Enclosed is a link to the multiple screens that I use to monitor Teco’s longer term uptrend
Monthly chart shows continued bullish uptrend
1. 20 Month moving average is trading above the 50 month
2. July closed above the 20 month and August is trading above it as well
3. Only 1 close below 4 cents since the April 2011 rally
4. Only 2 instances of trading at 2 cents since April 2011 rally
Weekly chart shows bullish basing pattern
1. Price is trading in the upper half of July rally
2. Price is stabilizing in the 20/50 week moving average area
3. 20 over 50 cross is lagging from earlier pop and drop
4. Doji candle forming in the same area as 4/16-4/23 weekly candle
a. Doji candles indicate stalemate between bulls and bears
b. Can indicates reversals
c. April doji candles preceded a pps decline because of TECO silence and extremely late financials.
d. Last time had 9 weeks of continued silence and no news of any oil production. Key difference is confirmed oil production, management’s active and aggressive investor communications, and expectations of further oil production
Daily Chart is showing 4.5 cent support defended
1. Price is trading under 20/50/200 DMA’s on light volume
2. No confirmation signal of broken support, price is only marginally below those levels
3. Multitude of intraday evidence of bearish price manipulation
4. Short term trend is neutral as per the sideways trading and volume
5. Neutral on daily means no indication of material move one way or the other based on the action
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