Penny stocks of OTCBB are generally difficult to analyze technically due to unusual price movements, and PTSC is one of them. That is why we preferred to draw a logarithmic long-term chart instead of a linear
one. PTSC fell down in a long-term downtrend (orange) in one and a half years from 0.77
to the 0.03-bottom support (gray). Total loss in stock price was 96.10%.
There were important supports at 0.30 (green) and 0.16 (blue), but they were both broken down and turned into resistance. However, below 0.90, PTSC formed a wide meaningful inverted head and shoulders (blue) and broke
up the long-term downtrend (orange). Now it is trying to complete the right reverse shoulder, which is actually the test of the neckline at 0.08 (red) of the recently formed double bottom. Huge volume is a clear sign of
heavy accumulation. The bulls will start to run as soon as the neckline is successfully tested. The long-term outlook is extremely bullish.
SHORT TERM: (See the attached 6-month daily logarithmic chart)
On the daily chart the double bottom (blue) at the head part of the major bottom pattern can be clearly seen. The pennant (orange) that dragged the price from 0.20 to 0.08 is a bullish pattern and is about to be completed. Huge volume adds bullishness to the picture. Expect PTSC to break up soon the pennant. We do not think that a bearish
scenario (such as a double top-pink) will materialize unless the 0.08-key support (red) is broken down.
The short-term outlook is also bullish.
Americanbulls.com posted a timely SELL signal 23 days ago. If you are still holding this stock we advise you to keep it unless the 0.08-support is broken down. If you do not have this stock and are interested in it, we advise you to add this stock in your portfolio as soon as possible.
PTSC is still technically cheap and has a bullish outlook for the long term and the short term.
A small note: Please, do not forget that this report is based on technical analysis only and here fundamental data (profits, balance sheets and soon)are not examined. Penny stocks and stocks that lost more than 90% of
their value always carry fundamental risks. So, be careful!