More shaking and ask sitting at the lows Treaty h

More shaking and ask sitting at the lows

Treaty had some very good news released today, and although it still closed lower, it was done on the back of a lot of buying. We all know that the stock is heavily manipulated and that the bears will keep throwing shares into ask until they are finally overpowered because they will probably not be able to handle the next breakout. It is far better strategy for them to nip it in the bud early, than to try fight it when momentum is too strong.

The support trendlines are illustrated below on the chart, but here is what the new money will be thinking. Treaty is now trading at the low end of a year and a half trading range, how much worse could it possibly get? If I buy at 2.39 cent ask and stop out at 1.75 cents that's still under a 30% loss. Meanwhile the stock has made runs all the way up to 7 cents whenever it traded down to these levels.

You can see that Treaty hit the double bottom from June 28th at 2.2, the low right before the last rally, and that we have 2 cent major support just below that. Based on risk reward alone this keeps getting sweeter. Combined with today's updates, it's a textbook setup.

I expect to see some bigger block purchases this week, not just small lot buying but 250,000+ sized chunks, perhaps as early as tomorrow. I have a feeling that some people more patient, better connected, and with a bigger bankroll have been waiting for the combination of the lows of the trading range and increased production to finally take a shot.

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