BioLargo Inc. (BLGO:OTCQB) was the subject of an email alert this morning because it is very close to breaking out of the very tight trading range it has been stuck in for the past month, as we can see on its latest six-month below…
This tight trading range is part of the somewhat larger trading range that has formed from the mid-May low which is thought to mark the end of the downtrend in force from last February.
A big reason that this trading range is expected to lead to a breakout to the upside soon is the persistently strong Accumulation line which has been rising steadily from early May—even before the price hit bottom and as we can see, with the price now close to the upper boundary of the downtrend, it won’t take much of a move to break it out of this downtrend. The improving momentum (MACD) which is now approaching the zero line, is increasing the probability of an upside breakout soon.
The resistance levels shown, which arise from past trading, are far from formidable but are worth noting.
The 10-year chart is most useful as it puts all recent action in perspective. On this chart, we see that, although the recent downtrend resulted in a significant loss in percentage terms, it was “a storm in a teacup” relative to the bigger picture, which is of a giant base pattern that started to form the 2019 low that is now approaching completion.
The very strong Accumulation line from the middle of last year is most auspicious and promises that the pattern will resolve with a new bull market developing in the stock. It is sometimes puzzling how a persistently strong Accumulation line can take a long time to translate into positive price action, and when this occurs it is usually for capital markets reasons that come to light later, but in any event, this certainly looks like a good entry point for BioLargo for all timeframes.
In conclusion, BioLargo is rated an immediate strong speculative buy for all timeframes. The company is a “green tech” company, which certainly the right area to be in at this time.
At the time of completing this update, BioLargo is right at the point of breakout.
BioLargo Inc website
BioLargo Inc. traded at $0.265 at 2.00 pm EDT on July 20, 2022.
