No a "box" is a "trading range, if you look at the chart of a stock, and pass a line through the highs and a line through the lows, during a "trading range" you create a "Box", the top of the box can be considered the overhead resistance and the bottom the support, a stock moving up or down will sometimes do it by passing through consecutive "trading ranges" like that, during an ascend the top of the prior box will typically be the support for the next box. n fast moving situations, however, that nomenclature does not apply, but in RDRT's case since early FEB we have completed one box in the $3 to $4.5 and are now on the next box which is bound on the bottom by $4.5 and the top just under $6 (forget the spike, it had no major volume). The next box could very well be between $5.5 and $7, and that one will be tough, but if the rest of the DD moves ahead, RDRT might as well.
Zeev |
