A Penny Stock Play – 2020-12-28

By | December 28, 2020

I have looked at $ACST in the past.  In fact, I have a small position in my portfolio as a reminder of not executing per a trading plan before entering the trade.   At present, it is down about 50%.  But, it appears to be back into play.

Over the last few weeks, it has been running up from its lows, with a huge day on Wednesday last week.  And, as the daily chart shows, with its recent pop-up, the 23.6% retracement looks to be starting to provide some support, though we will see this coming week if that is so.

For the last two trading days, the hourly chart holds up the 23.6 at current resistance.  It popped on high volume on Wednesday, so, we will have to see if it holds.   

The 3 minute chart for Thursday shows it holding steadily throughout the day, as well.

Though I don’t give much stock in analysts ratings, late this past week, Zack’s rated $ACST as a buy.   One of the differences between Zack’s ratings and other services is that it looks to maintain a standard distribution across each of its rating categories.  So, for something to move to a buy, something else must move down the ratings.  

A hold at the 23.6 may indicate the stock is shifting direction and starting to rise again.   A move and hold above the 38.2 (0.42) may indicate a bullish move up.