Elite Pharmaceuticals Inc (OTCMKTS:ELTP) Consolidating, Can it Bounce?

Elite Pharmaceuticals Inc (OTCMKTS:ELTP) Consolidating, Can it Bounce?

Elite Pharmaceuticals Inc (OTCMKTS:ELTP) Consolidating, Can it Bounce?

The technicals here are ugly, BUT, the stock consolidated well yesterday and today really is showtime. If the stock can hold it’s range here then it may well bounce back in the near future.

ELITE PHARMA closed down -0.024 at 0.208. Volume was 195% above average (trending) and Bollinger Bands were 244% wider than normal.

Open High Low Close Volume___
0.232 0.237 0.201 0.208 4,282,130

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 0.32 0.32 0.33
Volatility: 193 126 95
Volume: 4,603,844 1,828,736 1,577,071

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ELITE PHARMA is currently 36.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of ELTP.PK at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on ELTP.PK and have had this outlook for the last 1 periods. Our momentum oscillator is currently indicating that ELTP.PK is currently in an oversold condition.

Momentum

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 25.2405. This is not an overbought or oversold reading. The last signal was a buy 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 27.18. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 28 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -220.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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