$FROG on watch possible low or possible dilution

$FROG on watch possible low or possible dilution

$FROG was posted as a trade idea on the board this morning and it's something I'm going to watch for a possible bottoming formation. Today it had 18 million shares traded at the dead lows and they were listed mostly as sells. That could be a sign of dilution at the lows as this sucker is trading just above .002.

Bottom formation is not done in just one candle. It is a process that could take days, weeks, and in some cases months to form a pattern. This stock is in a confirmed downtrend but recent month's actions show that it has defended .002, temporarily recaptured the 20 day moving average, and then today possibly put in a bottoming candle on record volume. Today's volume is the highest in it's trading history.

Admittedly I do not know much about this stock but will add it to the watch list. If it can recapture the 20 DMA and start putting in a higher low pattern or some bullish formation then it could be worth a shot.

[IMG]http://i.imgur.com/IaOVj.png[/IMG]