I use TA a good amount and from my experience I believe many traders to do so as well... especially in "penny stocks"..

One of the key indicators I believe is used most often is RSI (Relative Strength Index) which is based on how quickly a SP moves in a usually 14 day pattern.. Anything over a 70 RSI is considered overbought, now when our share price hit 98 cents the RSI was at 81, which is unusually high for a stock that did not announce any (positive) news, so right there the SP was probably going to correct.. Another support line for GNH was the 50 day moving average, and again we were way above that average at 98 cents.. pointing to a correction as well.

I think what happened, is the misunderstanding of the news release, combined with a TA that was already pointing to a correction, created the sell off, plus panic, plus more sell off. etc...

Now as for today's price, it seems the 100 day average (50 cents) became the new support, so, moving forward, (historically) when a stock blows by it's old support (50 day in this case) that support then becomes the new resistance.. that said, from my persective, if the GNH share price can surprass 63 cents (the current 50 day average) and can hold above that, it's a very positive sign meaning the 50 day can again become a support line. Now If it hits 63 and then fails.. it may "bounce" between the 50 and 100 day average, whic is 50 cents and 63 cents... for a while..

Hope this makes sense...

Kevlude