Peter,
As you pointed out, all that spin-off/merger stuff mitigates the TA on CUBE a bit. I see plenty of early warning signs, but no confirmed sell signals, yet.
If you want to trade CUBE using TA I think simple near term trend lines are probably your best bet. CUBE has some very clear ones: thru the lows on 10/18 & 1/7, lows on 1/7 & 1/12, lows on 1/12 & 1/19, and thru the highs on 9/29 & 12/28. I particularly like that last one 'cause it used to be resistance but CUBE gapped it and used it as support yesterday.
There's a nice target line too, from the low on either 11/3 or 10/18 thru the high on 12/28. It'll be mighty tough for CUBE to get through that line.
The right side of a cup doesn't have to be exactly at the all time high. CUBE doesn't even have to complete a cwh pattern. It's just something to be aware of since it is common.
If you're not familiar with the cup with handle pattern check out this link:
traders.com
Now, compare that picture to CUBE's monthly chart:
siliconinvestor.com
As for today's action, CUBE put up a star today (almost a doji) which is a preliminary reversal sign, needs confirmation though. (CUBE also had a doji star last Tuesday and shot up nicely from there.)
equis.com
siliconinvestor.com
That today's star was on high volume and the failure to make a new intraday high are also both warnings. The high volume with very little price movement (open to close) is a possible blow off top.
Have I got you thoroughly confused now? All those are just warnings, not sell signals. Just be careful.
FWIW...Alski |
