BitNile NYSE: (NILE) Fills the Gap at $.5823 cents and Becomes a Screaming Buy

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Stephen Birmingham
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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.