Take a look at Water Chef (WTER). A six month chart reveals a stock that has climbed more than 300% in a few days followed by a sharp 50% retracement. Holding the current price for a few days might indicate another strong move to the upside. Now take a look at this same stock on a five year chart. Still feeling confident? Probably not. These large spikes in price are a common occurrence every ten months or so for WTER. Each spike is followed by a continued decline in the price. Who can blame this stock for being tired after monster moves like those? Technically speaking, keeping a perspective by checking charts of various time periods is essential to good decision making, especially if you plan on “marrying” the stock.
Quazimoto is quick to remind me that he has no plans on marrying anytime soon, but another short term spike for WTER is very possible. Too early to be included in the watchlist but there are always exceptions to the rule. Quazi tend to “eyeball” anything that retraces on lighter volume anyway. His favorite numbers are still .382, .500, and .618. More on Fibonacci numbers later.