LBAS an interesting chart

[Riddicks]

Hey Guys, just looking at the chart of this company called Location Based Technologies, Inc. The stock has moved up from $6 in June to almost $10 last week and then had a 10% pull back on no news that I found. But the rise up from $6 had been on practically on very little or no volume, does this usually mean that institutions are buying or just that it doesn't mean much other than that more people want to buy this than sell?

The volume is what caught my eye, it has lower volume than what I would like to trade but I am thinking that this stock hasn't caught anybody's eye yet and looks like somebody is accumulating alot of the stock slowly and slowly.

Also the pull back sort of confirms the move up for me, what is your opinion? Does this stock keep it forward momentum going? I want to say it does but the low volume scares me as the bid and ask spreads might be large but looks like a steady mover. I have attached a chart, any opinions are more than welcomed.

Thanks.

http://stockcharts.com/h-sc/ui?s=LBAS&p=D&yr=0&mn=9&dy=0&id=p64029902925

[wallstreetsedge]

unfortunately a bb stock is a bit harder to follow... liquidity issues become a big problem if you want to trade actively or aggressively. my main concern with a company like lbas would be.. what caused the rise in volume compared to just back in april?

what you could do.. is look for a big move down and look for a steady price hold with decent volume - it could be helpful in determining if there is any accumulation going on

however, if you go by the chart.. give this company 8 months and it'll be back at $5 or 6

[Riddicks]

Thanks WSE, always appreciate your response.

[primer]

however, if you go by the chart.. give this company 8 months and it'll be back at $5 or 6

Can I ask, what do you see on the chart that indicates this? Thanks.

[wallstreetsedge]

looking at each individual candlestick, you can see an indecisiveness between the bulls and the bears.. on the big climbs up, you see immediate selling right after, with strong institutional selling behind it

every intermediate term indicator suggests its overbought and every short term indicator suggests its overbought.

if we were to use the elliot wave theory, the stock should be completing its 3rd wave right about now... strong sell shows the support at 8.5 is extremely weak and we could see it crack and go to its next weak level of support which is about $7

by wave 5, we should be back where we started.. about $6 or perhaps its strongest support $5.50... will it touch $5? i doubt it, it cant crash through that many support levels before stopping but also there isnt much keeping it at 8.70... so its all dead money to me...

the only thing that looks good is its bullish trend.. but even trends stop working sooner or later and i think this one has had its run

over the next couple of weeks.. i think it has a little steam to recover.. maybe we see about 9.20 before we start turning downward but i wouldnt be crazy about seeing a breakout above that...