The weekly chart pinch broke... and all NOK did was to make it back to the middle bolly on the weekly chart ?
Recovering only half of last months moves lower... on anemic volume ?
Yeesh.
Technically, it's a pretty anemic looking move on really light volume... not overly convincing... and, as the pinch HAS been broken, now, you don't even have that to look forward to now as a driver in any future moves higher, from here, or as a factor in "support" enabling taking trading positions in the face of the decline.
How it will trade from here, now that the move out of the pinch is... done ?
If you're trading it short term, it makes sense to take profits where and when you have them, and then wait to reset your trading positions on pull backs, particularly in an issue that is still giving no reason to see that it's bottomed... and that still has no ability to show that it has... I'd have hoped to see a bit more in the bounce than we have. I'd think taking profits on a rebound to the top bolly on the weekly charts would be a no brainer... but NOK hasn't made it there ? The middle bolly might have to be "good enough".
The pattern out of the pinch... isn't showing us that there is any reason trading patterns from here will differ now from the patterns we saw before... there isn't a fundamental shift that is driving the change in the trade... so, enjoy the technical trading opportunity, while you can ? I'd still not plan on doing more than trading the %s on the bounce out of the pinch.
I think I'm basically right, still, that the timing of the current move is based mostly on management not having any thing to say, just now, giving traders a brief period of respite from the usual in the market reactions to what management has to say when they do speak...
They fluffed the numbers last Q... and some want to pretend that the "better than expected" result in the cash actually is meaningful or sustainable? Good luck with that.
The real numbers will come home to roost, soon enough...
And, they'll do that at a point in time when management will unfortunately be required to open their mouths, yet again...
God knows what will come out.
Technically, thus far, it's disappointing as a pinch trade... that has the stock only back to where it was mid June.
If, like me, you're not really here for the short term trade ? Still not seeing anything more than "chart noise" in the recent trade on the pinch breaking... so, I'll continue to wait for the fundamentals to provide any hint of a proof of larger change in things, based on something more than short term traders optimism...
My guess is most shorts probably cashed out at and prior to the recent lows... and they may intend to reset positions, soon, after the bounce out of the pinch trade. I'd be surprised if they didn't try to do that from "higher"... but, for now at least, the market doesn't really seem to be helping out with that very much... |
