Re: FRG ... >>> as you'll discover, the 50 dma will prove yet again to be the bottom before the next leg up. "If it ain't broke...don't fix it." FRG doing what its supposed to today. 50 DMA held beautifully. <<<
No, it didn't. Price closed below the 50 day moving average.
In my previous message to you, I wasn't disputing whether the 50 day moving average would hold or not. Here's what I was disputing when you said:
>>> Here is an example of "buying support", Jim. Watch what happens at/near the 50 dma for FRG. Technicals failing? I don't think so. Smart $$$$$ will buy the 50 dma, as has been the norm for a long time now. Make no mistake about it....charts of the U's have no "bearish" look whatsoever at this juncture. Enjoy the show :) <<<
Message 23540711
The charts were showing bearish implications in the short term. That's what I was respectfully disputing.
The chart below will show that when price tested the 50 day moving average earlier, it had buying support. Money flows were very positive. The chart clearly shows this!
The most recent tests of the 50 day moving average DID NOT have that buying support, and the chart clearly shows that as well.
In order for an uptrend to continue, you must have buying support. You must have more demand coming to market than supply. It wasn't the case this time around and the charts confirm that as well.
I'm not saying FRG won't rebound. I'm saying you misread the charts if you believe what you said above. I'm saying it was not a time to be buying large positions.
At a time when you were buying large positions off weakness, professional money was taking profits. Professional traders buy strength and lock in profits on weakness.
Based on the chart below, I would reasonably expect some price support in the $12.25 price range. How long it lasts, I don't know at this time. It would take another peek when and if it occurs.
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