After hitting an all-time high on Monday, people are scared the run is all over. My original target (posted months back) was to get to $60 ($30 after the split) and that, to me, then and NOW, was a resistance point. It is, IMO, EXPECTED that the run might slow down here and take a rest.
Add to that the fact that Pacific Crest downgraded the stock on Tuesday (to a "BUY" from a "Strong BUY") and obviously some people (the Pacific Crest clients for one) have been EXITING. We had a lot of volume on the day of the high, and even more volume when the downgrade was issued.
Wednesday the volume lightened up and we didn't really see too much serious selling. the stock took a couple hits, but recovered nicely.
We'll see during the rest of the week if $30 will be crossed again. (we closed at $27.06 bid on Wednesday). i.e. if we HOLD without dropping below say $26 or $25.50.
Then, I think we'd see $33 next week. BUT we need to watch it closely now. $30 was all I was looking for, and the rally just may stall out here. Wait, watch, ...closely.
Colin |
