NEOMedia Technologies (OTCBB: NEOM) – After a three day dash from $.014 – $.233 for a 1564% gain, NEOM has decidedly died off and lost most of those gains. While it’s terrible news for those that are buying high and selling low, this could be a great opportunity for those looking for a profitable reversal play.

According to Buyins, NEOM is on the naked short list for OTCBB, and as the chart sets up and volume comes in for NEOM there could be a massive short squeeze! Given that NEOM hasn’t had news since June 6 (which even then didn’t affect the stock price positively), watch out for a technical play! That’s just what NEOM’s chart is showing us!

Make sure you SIGN UP for my FREE EMAIL ALERTS! Winners last week: WAMUQ 64%, SHZ 67%, YRCW 54%, BBDA 214%

Technical Indicators:

• NEOM created a new support line at $.032 and bounced off Friday to a high of $.043, but don’t worry too much because it closed at $.0375 giving us plenty of time!
• The RSI is tipping up into the buy zone at almost 45! This is almost a perfect RSI for a solid reversal play.
• The MACD is showing a potential golden cross, which means with a little more green volume a reversal can be confirmed.
• The ADX is showing slightly reverting positive and negative lines meaning that the tide is starting to turn here.

The Bottom Line

NEOM has some solid indicators, yes it is a little early, but the positive price action is starting to show a potentially beautiful reversal trend on the chart. Add to that a potential short squeeze and long investors averaging down, and it could be an epic reversal in the making. I’m not saying NEOM is going back to $.23; it could by all means, but trade responsibly!

Make sure you SIGN UP for my FREE EMAIL ALERTS! Winners last week: WAMUQ 64%, SHZ 67%, YRCW 54%, BBDA 214%

Good Luck,

Ian Decker

Disclosure: No Positions

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