Global Digital Solutions, Inc. (OTC Pink: GDSI) is firing on all cylinders so far in 2019, as GDSI has returned almost 222% year-to-date as of this publication. GDSI hit a high of $0.034 in early 2019, after the company provided operational updates and caught up on filings. In addition, GDSI’s suit against Rontan continues to move forward, as a recent ruling scored a big initial victory for the company.
Despite the time-consuming court process, GDSI shares have continued to hold up well and shown resilience. In fact, the charts continue to show bullish momentum is building, as the bears continue to slowly lose their dominance.
GDSI: Annotating the Chart
Right off the bat the chart shows that GDSI’s price action has been finding strong support around the $0.0125 area (as shown by orange horizontal line). Despite the repeated attempts to breakthrough, the bulls have repeatedly “held the line.”
MACD: The moving average convergence divergence (MACD) indicator is very close to a bullish crossover once again (first gold circle) after nearly crossing a couple weeks ago. Furthermore, the MACD histogram is showing weakening bearish momentum.
A bullish crossover for the MACD would be a major signal, as it confirms that the bulls have control of GDSI. The last time GDSI experienced a bullish MACD crossover was right before hitting the high of $0.034 back in early February 2019.
RSI: GDSI’s relative strength index (RSI) is currently at 49 and trending upward. The RSI previously saw resistance around the 50 level, which will be closely watched for a potential breakout. Currently, the RSI does not show an “overvalued” or “undervalued” signal.
Stochastics: The stochastics recently experienced a bullish crossover, in which the %K (black line) crosses over the %D (red line). Stochastics is the measurement of price momentum over a certain time period. The momentum indicator does not show either “overvalued” or “undervalued” signals.
Court Ruling Against Rontan’s Motion to Dismiss Puts Case One Step Closer to Conclusion
Just as we mentioned in our last technical analysis article on Global Digital Solutions, the market continues to await a catalyst that could help propel a potential momentum shift. However, the recent judicial ruling against Rontan’s motion to dismiss is not only a big initial win for GDSI, but it also puts the company one step closer to receiving the final ruling. The final ruling could be a wind-fall for GDSI, as the company’s lawsuit consists of $63 million claim. If obtained, this would allow Global Digital Solutions to expand operations and continue growing the company.
While there certainly is no timeline to when the courts could make their announcement of a final ruling, progress is continuing to be made. Aside from the Rontan case, GDSI also had announced that the Hull and Lopez lawsuits have been “tentatively settled,” and just awaiting final paperwork. Management continues to get the company back on strong footing and positioned for future success.
Overall, GDSI is making great progress in 2019. The company continues to settle outstanding legal cases and focus on the potentially lucrative Rontan lawsuit. The charts are showing the bears are continuing to lose momentum, as bulls slowly enter the picture. Technical analysis could suggest that bullish control is nearing and just awaiting a catalyst to spark the momentum shift. There is no doubt that the final ruling in the Rontan case is that catalyst. Despite playing the waiting game for the court decision, GDSI continues to hold its own.
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