Paul,
My charts show an upper resistance at 18 3/8, and a strong support at 15 1/2. The next level of support is the IPO price, around $14.
Basically, TA reasons that we will sell the stock at whatever price we bought on a down drop, that we will buy the stock at a previous bottom, and that a reversal in price will repeat. We have seen the bottom on 6/18 on very strong volume, so that indicates a strong support. The next support level should be the IPO price, since it was the price that a lot of institutions bought the stock at.
Now, your friend came up with $16 as the current resistance. To know that we need to look at the intraday chart for 6/18, and see how the volume breaks down below $16. |
