As many know, AAXN has a very high PE ratio, high operating expenses, litigation w DGLY patent lawsuit, and newly added to their list this week was additional $50 million accordion loan (debt) which can go as high as $100 million. Why did they add debt with all the turmoil with the FED raising rates recently? I am speculating an announcement that AAXN buys either half or pays FULL net present value (NPV) x 300% for DGLY and its assets, thus an earth shattering SP correction.
FYI- I knew the info above before looking @ chart patterns, hoping for another shot @ around the $30-35 level for RE-ENTRY. It just so happens that the chart is playing out this way, just in time.
I'm seeing ceiling of resistance @ about 50.** which was tested already. Further more, if anyone is interested- last time AAXN had a dead cat bounce up to 50 dma- it recieved hair cut of ~20% .. This hypothesis is following my understanding of elliot wave's corrective theory (ABC), and the use of the ADX indicator (which is showing new hi's) in which both point to significant reversal of recent price movement coming soon.
Feel free to comment, GL to ALL ;)
-Scooby
FYI- I knew the info above before looking @ chart patterns, hoping for another shot @ around the $30-35 level for RE-ENTRY. It just so happens that the chart is playing out this way, just in time.
I'm seeing ceiling of resistance @ about 50.** which was tested already. Further more, if anyone is interested- last time AAXN had a dead cat bounce up to 50 dma- it recieved hair cut of ~20% .. This hypothesis is following my understanding of elliot wave's corrective theory (ABC), and the use of the ADX indicator (which is showing new hi's) in which both point to significant reversal of recent price movement coming soon.
Feel free to comment, GL to ALL ;)
-Scooby