marubozu candlestick - tag category postings

Majic Wheels Corp is a pinksheet penny stock whose sole product from what I can tell is this little toy car that can drive vertically on any wall and also on the ceiling above you.  It seems like an interesting concept for a toy but I am trying to put my ‘little kid hat’ on and wonder if this product could ever hit mainstream and be a hit.  To be honest I am not sure.  It suppose it would be a hit to show off to your friends (isn’t that one of the big reasons why kids love toys so much anyway so that they can show them off to other friends) but maybe after a little while the novelty would wear off.

But that is probably true of most toys anyway after a while.  I guess it depends on how complex the toy is and the levels you can take it to.  This product seems like it is somewhat uni dimensional.  Still it is an interesting concept.

You can see the video of this gravity defying remote control car here.

More interesting is the price chart of this penny stock.  It had a huge move up today almost 83% and the chart seems to have a saucer bottom formation.  Today’s volume was the highest since February 2010.

I like the general shape of the trading pattern since February 2010 as I indicated earlier a saucer bottom formation.

I also like the fact that volume basically dried up to nothing during mid July, it was practically non existent and there were no trades for several days at a time.  The reason I like this is that it tells me the stock had reached its selling exhaustion limit.

The candlestick on Majic Wheels Corp today printed an absolutely beautiful MARUBOZU candlestick which shows that the buyers took control right from the open and closed right at the highs which shows they really controlled the action and trend all day.  Seeing a marubozu candlestick near the bottom of any price chart is always a good thing because it shows a complete transfer of demand after the previous bear market.

I also like the fact that this marubozu price candlestick has tested the previous shelf of swing highs on dramatically higher volume.

So that was the good. What about the bad?

The bad part about this penny stock is that it has very spotty inconsistent volume.  This is never a good thing even in penny stock land. Because of the spotty volume MJWL has the ability to do 100% retracements of an upside move very quickly.

I suspect this penny stock will gap up at the open tomorrow.  It seems to have the possibility of reaching .015 to .02 but again the spotty volume is a definite risk element.

The low volume is the reason why I cannot give this a penny stock rating of 1.  I am guessing here but this penny stock may be able to maintain a robust 2 to 3 day volume pattern into the end of this week.  But again, it has shown the ability to retrace very dramatically despite the promising nature of the chart.