With all the FUD (fear, uncertainty, doubt) as of late, it is easy to think
that the world is falling apart, especially the markets. Nothing could be further from
the truth, however. Growth stocks have been beaten to a pulp and are starting to enjoy
some resurgence due to short coverings. Today was no exception when NYSE: (NILE) finally
filled the $.5823 cent gap from its recent break out in mid-March. For those who are
technically inclined, this was par for the course. Needless to say that bashers on all the
forums are calling it a "head fake" and a "total scam" which adds that much more fuel to
the bull's fire.
At 10:14 am EST on April 6th NILE hit its low of the day of $.5823 and within 10 minutes
it was up to $.6040 in a severely red market. This was the buy signal for the chart-savvy
investors who were eagerly waiting on the sidelines for the past week for this opportunity.
By the time smart money power hour rolled around at 3 pm EST, the stock was enjoying a 20%
gain with ample volume to back the momentum while validating the reversal. This is how the
game is played and this is how money is made. The stock has a daily average volume of 19
million shares and it finished the day with a whopping 64.5 million shares during regular
market hours. In after-hours, the stock is still surging and is expected to outperform the
markets by a long shot in the coming days until Friday.
It is always entertaining to observe the tug of war between the bulls and the bears.
Today's price action indicates that the bears have exhausted their fuel supply and it is
now time for them to cover. The recent top of $1.18 on March 28th provided resistance that
now has to be retested. Whether we get to that price level or not will remain a mystery until
Friday most likely. Currently, the options markets are betting that by April 14th NILE has a 60%
chance of being below $.61 cents. Before today's move, the analysis showed $.50 cents, and with
each passing hour, the price keeps climbing.
Although BitNile dabbles in a variety of industries, crypto mining is a newfound lust that it
has strategically invested in recently. Their overarching aim as a holding company is to diversify
into cash flow companies that boost their quarterly earnings. Naturally, this begets a lot of
haters who we refer to as "shorters" and consequently they get crushed in times of unexpected news
releases or positive developments.
If you found this helpful and would like more analyses of investments, stocks, equities,
crypto investments, and variable valued assets, please email me or call directly. I would be happy
to offer my services.