I just looked at a chart of GNSA. The last signal I got was a sell on 9 Apr. Its a very low volume stock. The trend is pretty flat/neutral and the bands are wide and peaked, so I'd expect it to fully trade between the upper and lower bollinger bands on price. Upper band is at $5.00. Lower band is at $3.00. I think its likely to drop to support in the $3.25 area over the next week and then bounce back up as volatility decreases it won't go back up all the way to $5.00. It will be something less like $4.50. It was a nice try to get more out of it, but as soon as you see its not going to do what you expect, you've got to just get out.
How did you get two sets of signal? It might be because of the low volume. Low volume on a 60-min can cause that problem. That is probably the number one reason why I do not attempt to try to trade low volume stocks. You don't get any of that intraday predictability. You get stuck just using the daily chart. You shouldn't get a margin call just because it went under $5.00. It depends on how much total margin you have left in your account. If you have a large % of your dollars on this one, then you might be subject to a margin call.
After that it will probably bounce good. Couldn't get a download of data for PNEC for some reason.
<<Wayne, could you do me a favor and look at the chart for GNSA?
I bought it the other day at 5 1/4 hoping I could ride it up to
5 3/4 and get out. Depending on if you use daily or hourly stochs
and bollinger bands, you get 2 different signals.
The hourly (on IQC) shows that the price is pushing the bottom
band which is also going down, meaning less support. However,
the daily chart shows medium band width that looks like it may
be flattening out and the price has bounced to the lower band.
Now, to add more to my deliberations, this stock has bounced off
the 4 3/4 price every 2 months for last 6 months or so (the chart
is pretty amazing as far as timing of the bounces). For these
reasons, I would think that it would bottom out at $4.50 at the
very worst case (barring no bad news). My problem is that I have
some on margin and it dropped below the $5.00 mark. I still
have not gotten a call from E*Trade so I'm not sure what to think.
What is your feeling on this chart?>> |
