We took partial profits in BioLargo Inc. (BLGO:OTCQB) towards the end of January because it had risen sharply to become quite heavily overbought, making a reaction back or a period of consolidation likely. In the event it pushed on a little higher after we sold before then reacting back modestly towards its rising 50-day moving average, and it is believed to have bottomed with a couple of reversal candles several days back, a dragonfly doji followed by a bull hammer, as we can see on its latest six-month chart.
The key point to note here is that although it is little changed in price since we sold (or partially sold), its technical condition is considerably improved. This is because it has substantially unwound its earlier overbought condition and because its volume pattern remains strongly bullish with strong volume on the preceding rally dying back quite dramatically on the dip with the 50-day moving average coming into play to better support another upleg. Another point to note is that BioLargo has not been impacted at all by the weakness in the market generally because of its intrinsic strength.
With its long-term charts looking most favorable and its positive fundamentals, BioLargo’s nascent bullmarket looks set to continue and probably accelerate, so those of you who are holding should stay long and this is the time to buy back any positions you may have earlier sold and also to add to existing positions.
BioLargo Inc website
BioLargo Inc. BLGO on OTC, closed at $0.265 on Feb. 22, 2022.
Posted at 7:55 am EST on Feb. 23, 2022.
Clive Maund has been president of www.clivemaund.com, 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.
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