GBSM bottoming? technical analysis


Hi everyone! first post
I am considering a position in this stock.

Current price: $0.0925

Jun2015 08/12/2015 -0.2
Mar2015 05/14/2015 -0.82
Dec2014 02/18/2015 -0.37
Sep2014 11/13/2014 -22.83

Huge volume this week. Biggest it's ever had sitting at 73m shares
Analysts average ratings ranging between $3 and $9

On the technical side:


I am looking at the 120 min chart over the period of Thursday and Friday. I can see a high volume "piercing pattern" forming in the first 2 120 min bars and closing more than 3/4ths into the red bar. the first red candle on Friday can be considered a re-test of the lows of this pattern at 0.085. I can draw a trend line from the bottom of the piercing pattern and the low of the first red bar of Friday ( 0.812 and 0.850) and it will show that the last bar of today closed JUST above this trend line. Most important in my opinion are the last 3 120 min bars - a 3 star pattern formation. We have 3 Doji candles all with a volume in the range of 1m-2m, that's bellow average but compared to the selling period which took place in the last 2 weeks this can be considered pretty high. Also their real bodies don't touch and the middle candle is lower than the other 2 which, all characteristics specific to the 3 star. All 3 are above the piercing pattern low and as i mentioned earlyer, the trend-line. Also worth mentioning is that we have a final green bar in the after hours session with it's wick touching our extreme low of Friday 0.0812-815 and finally closing above the last Doji candle at 0.0925.
I would have liked to see support at 0.0935 at the bottom of the first bar of Friday. it didn't happen, but on the upside this bar closed withing the range of the real bodies of the piercing pattern from Thursday. the 3 star formation follows at a level slightly above the piercing pattern. Until these 2 days, no other reversal pattern are visible in my opinion.

Any input or other opinions are appreciated. :idea:
Last edited: