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Internet Accessibility Stock 'Shaping Up for a Major Bull Market'
Contributed Opinion

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A company whose technology makes the internet accessible to more people is the focus of technical analyst Clive Maund's update.

As it approaches completion of a very large base pattern, AudioEye Inc.'s (AEYE:OTCQB) stock looks like it is shaping up for a major bull market. On its long-term 7-year chart we can see that a Cup & Handle base has formed with an extended Handle that could also be described as a chain of Handles. Breakout from this base will be signaled by a clear move above its upper boundary at the $10.00 level, with resistance up to the 2017 peak at about this level. If it gets above this level we are likely to see marked acceleration especially because the recent 1 for 25 reverse split has greatly reduced the number of shares in issue. We last bought Audioeye at about $5.00 (adjusted for the reverse split) back on 11th January just ahead of a spike and never sold it.

Traditionally reverse splits were seen as bullish for the obvious reason that they reduced the number of shares in issue, thus making the price more sensitive to increased demand and more likely to respond with gains. However, more recently they have acquired a bad name due to repeated stock diluters using the reverse split as a means to get the stock price back up to a "respectable" level so that they can whack shareholders with more share issues. Most investors now simply assume that management are crooks who will do this, but that is not the case with all management—some actually adhere to ideas that may be deemed to be old fashioned these days, like making good quality products and making money for shareholders. The management of AudioEye is believed to fall into this category. In any event, the stock price has responded well so far following the reverse split, and to date there have been no fresh dilutions. Before leaving the long-term chart it is also worth observing the positive volume pattern and volume indicators, which suggest that the chances of a breakout from the base pattern are growing rapidly.

The 6-month chart for AudioEye certainly looks bullish, with sharp rallies on strong volume punctuated by normal periods of consolidation, and moving averages now in decidedly bullish alignment. This is an "all systems go" chart, and barring a rudely timed stock dilution (management would have to be dumb to do a dilution here—if they are going to it would make a lot more sense to do it on a run-up after a breakout), it looks set set to break above $10.00 soon, which should cause the uptrend to accelerate. Note that even though it is described as already being in a bull market on this chart, the real action starts once it breaks out of the base pattern by breaking clear above $10.00.

Holders should therefore stay long, and AudioEye is rated a buy here for an imminent breakout and especially on any minor dips.

AudioEye Inc website.

AudioEye Inc. AEYE on OTC, closed at $9.00 on 28th September 2018.

Clive Maund has been president of, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.


1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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Charts provided by the author. Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

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