My best analysis is support between 22 and 27, highs and lows repsectively. I covered call this stock. And after selling the Sept 25s for 1 1/2 last week, I put the order in to buy them back at 3/8 today. I may or may not get called on that, but I hope so. RSI is pretty high, so I don't expect a technical bounce. Stochastics still have a way to go. I believe that 22 is about as low as it can go before people start buying, regardless of the charts.
I used this opportunity to add 300 more shares at 23 today, and hoping to get my calls back, waiting for the next runup above 25. If it moves slowly down this week, I see 22 as the low. After the huge hit it took on Friday, I'm leery of the technical indicators and their accuracy. I'm sticking with my numbers until I see something in the charts that prove otherwise. It's dragging the lower Bolinger bands down on the daily chart, but the weekly still has the lower band at 22, with longer term RSI dropping, and stochastics moving towards the lows. These are good signs for a bounce OBV is still pretty high, short and long term. That worries me a bit.
Conclusion. I see it bouncing off 22. BUT, because it wasn't a steady drop, I'm a bit nervous it might fall through that support. If that happens, we could see $10. I REALLY hope it doesn't do that, as I have no puts any more....if it falls through 22, I'm buying enough puts @ 20 to cover me from total loss....
Ryan |
