Jeffrey, ITWO, gapped down at the open on Friday....A certain trading strategy was employed by the pros here...."When a stock gaps down, if one hour after trading, the present price is above the opening, GO LONG,BUY!"....That is what happened, the stock got oversold too fast, and the traders brought it back up by short-covering and going long....However, the downward trendline has been broken...I would be tempted to short the stock in the 57.50 area,
because that is as high as I see it going before it bangs its head on the top of the upward trendline and continues down...My Pring KST did a 0 line crossover to the downside on Friday...In addition, if you take a look at the Relative Strength chart on ITWO, I see a double top in place...It is amazing how you can apply TA to certain indicators besides just the price chart...You have cover areas at 54.00,51.44, and my major support area of 48.75.....Regards, Mark |
