Based off 220 votes on a Twitter Poll conducted by Sunny, SVTE won for a Technical Analysis blog packet for this week. Without further delay:
Are We Seeing The Resurgence of SVTE?
In this blog packet, we will be doing an in-depth technical analysis of the stock SVTE (Service Team Inc.). All of our decisions and perspectives talked about in this packet are based solely on technicals, nothing else. To start this off I would just like to say I had someone tell me about SVTE at .0001. They said the usual, “hey man check this out it could be a good one”. I actually kind of blew it off based off the history of the CEO being flaky and the stock never performing as expected. Lets just say I wish I had bought some 1’s. I own zero shares of SVTE, so let’s go ahead and dive as usual into the price channels.
Price Channels :
Price channels, especially in this stage of the stock price, are crucial because they can literally affect the entire future movement of a position –even 100’s or 1000’s of percent already up. What we want to see is a proper accumulation and disbursement of shares, are people actually buying 2’s and 3’s and will it properly churn those .0001 holders? Let’s take a look…
In order to best determine the current price channel movement, I will be looking at the month of November. This is the month where the action seemed to have shifted upwards and volume started to pour in.
Price Channel .0001 – .0002 Shares Traded = 4,813,700,000 approx
Price Channel .0002 – .0003 Shares Traded = 1,218,100,000 approx
Price Channel Summary:
What we are seeing here is a very high share count stock attempting to make a move. This is very evident with the 4 billion shares traded within the .0001 – .0002 range. Overall these price channels are very unbalanced, but being so early in the stages of trip zeros it is difficult to tell just how unbalanced. The key we need to see in order to judge whether these price channels are churning well will be the accumulation meter below. Based solely on what we see now, we definitely had a lot of people flipping between .0001-.0002 which may have increased that price channel volume. To summarize, each tick is definitely going to take some work, and what I mean by work is high volume. Overall : Moderately Bearish
What we see, here, is a steady rise in accumulation throughout the entire year. It’s actually surprising to me to see this and it leads me to believe many .0001’s have been accumulated and are being held. The key aspect that needs to be looked at is the month of November –when most action began. We see a quick spike then a sudden downtrend which definitely shows those .0001 holders finally made the decision to sell their shares at .0002’s. What we see next though is way more important and that is seeing the accumulation spiking how it is right now. The reason this is important is because this means people are accumulating those .0002’s/.0003’s (a higher level) at a heavier rate. Overall : Pretty Bullish.
Steady but spiky uptrend would be the best way to describe it. This tells us volume comes in random chunks, not steady volume. The overall volume at higher levels though is driving this uptrend; keeping it “on balance”. What the SVTE holders want to see is this indicator beginning to stabilize as the price increases to keep a steady, not spiky, uptrend. Overall: Neutral.
One of my favorite indicators because it shows you the true strength of an uptrend or if it’s just all fluff. What we are seeing here is definitely a strong rise in the strength of trend with the ADX (black line)shooting up to a 41 reading rather quickly in November. We are also seeing DI- shooting rapidly downwards leaving plenty of room for this trend to build upon itself. Seeing the DI- this low is key as the DI- has caused this trend to suffer in the past. Overall : Bullish.
In the past, when we have seen the CMF spike, it has correlated to price rising. For the SVTE holders hopefully seeing this indicator beginning to spike can lead to another spike in price. The CMF has failed before as seen between the two other spikes. This failure was most likely because of either dilution or failure to maintain the accumulation indicator. It will be important to watch this indicator and also see if the price is reflecting an uptrend with the CMF spiking. The correlation between price and this will be key and tell us a lot about the future of SVTE. Overall : Neutral.
Final Summary and Chart :
To conclude, the toughest hurdle for SVTE will be what makes up SVTE itself. What I mean by that is the share structure. The share structure for SVTE is what I call a little on the piggy side. This means it takes a lot of volume, especially a lot of buy volume to make the stock move upwards. Can this happen? Of course –I have seen it dozens of times where these types of stocks move into .00’s and keep running, it’s just not easy. Many aspects will have to go into SVTE in order to make a nice uptrend happen. The CEO will have to follow through, filings, momo creators, but most importantly I would like to see some sort of share reduction as this would solve its main issue. In terms of the chart it is very much in the middle. Most indicators point towards a run but they also show lots of signs of that being difficult to accomplish. SVTE needs to keep up with the steady rise in accumulation and some really solid momentum creators to make this happen. Overall SVTE RATING : Neutral but Bullish with a close over .0004
Technical Analysis by Alex S; Owner/Founder
You can follow him on Twitter @SUNNYLAND24
Compiled/Proofread by Noëlle H; CTO/Site Administrator
You can follow her on Twitter @subliMINXal
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