Hi All,
I must be a glutten for punishment for posting here again, but to be of some help I will try to give an objective technical analysis. Firstly, I am no longer in ANCR either long or short, and to clarify my trading style I do not short stocks, since I mainly play INDEX options.
1) SUPPORT LINES = 21-22, 16.75-15, 12.50, 10.50, 9, numerous support lines between 9-5.
2) MAIN TRENDLINE - it could be argued the main trendline is at 17.5 or 15 for today. Keep in mind that the main trendline has an upward slope. A significant break of the MAIN TRENDLINE would be a strong negative. I realise that ANCR has dropped significantly, but on a technical basis it is still in a long term uptrend until it was to break the MAIN TRENDLINE at 17.5 or 15.
3) CURRENT DOWNWARD TRENDLINE - at 30 for today and is declining at a rate of about 50 cents per day.
4) TRIANGLE - projecting out the MAIN TRENDLINE and the CURRENT DOWNWARD TRENDLINE a huge TRIANGLE appears to be forming. The APEX appears around 20-22 range and to occur in about 15 trading days. For those not familiar with TRIANGLEs, they normally imply that the price oscillations will narrow towards the APEX price(20-22). After the APEX there is normally a strong move, direction unknown, and this strong move is normally motivated by news.
5) ANDREW's PITCHFORK - MIDDLE TINE at 20 and UPPER TINE at 27. Rate of decline in the PITCHFORK is about 75 cents per day. It is common for bounces to occur at the MIDDLE TINE.
6) FIBINOCCI RETRACEMENT - I used 10 as the starting point of this rally since it gapped upwards from 11:
38% retracement at 27
62% retracement at 20.50
If ANCR does not bounce from here, the lowest FIBINOCCI retracement level, would imply further negativity.
7) If ANCR does bounce from here the upside may be contained by the UPPER TINE of the FORK or the CURRENT DECLINING TRENDLINE.
I am not considering any fundamentals and will leave that up to others.
seeya |
