Teco Bear Strategy: Delay and Pray
In my Friday report and in previous reports I outlined the key technical factors lining up for an explosive rally in the making for TECO. Chiefly, these are the long term support at 3 cents on the weekly chart, the MACD cross preceding the last 6 rallies, and the fact that price closing above the 20 day moving average preceded the last 6 rallies.
Combine these factors with the impending news catalysts such as the 10 Q, Belize, E. Texas, and W. Texas, and you have a recipe for traders actually front running the news release.
What I saw in todays tape, as reported this morning, was a very deliberate effort to suppress a close above the 20 day moving average. On October 3rd TECO traded above the 20 DMA for the first time since July 25th, and the bears utilized more volume to push it back down to 3 cents where it was accumulated heavily.
With price opening at 3.6 cents, the bears had to act fast to stop the move before it gained momentum. Once a breakout on TECO gets triggered, it is like when a running back gets past the line backers and is one on one in the secondary with nothing but green until the end zone. The key is to stop the play early. Today, the bears expended a little over 4.6 million shares to prevent the breakout and the most they could manage is a close at 3.2 cents.
Furthermore, you can take a look at the end of day time and sales where once again we see multiple paint jobs, punctuated by the end of day sale for 32 dollars to paint the tape.
I have been commenting on TECO for over a year at this point and not even once has a single basher or bear ever refuted the bidwhacks shown on a daily basis. Not even once has a single basher or bear said, "No those are not bidwhacks, someone is honestly selling 32 dollars worth of Treaty at 3:58 pm because they are concerned about the company." They will rehash old news, predict worst case scenario as base case scenario, and even make up things about the company, but for some reason they won't comment on the obvious paint job.
In any event these stalling tactics will eventually fail and when the rally is under way the bears won't have a prayer.
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