Hi Jim :o)
>So what happens if we get the price
without the volume? Do we have to back up and try again? <
1. stall - it could float around $78-75 range and base, then breakout.
2. breakout - it could breakout anyways, but it might fail if it does. the volume IS the indicator, it tells the story whether or not it is being accumulated.
3. test low - if this happens it would likely rebound sharply at the 50-dma. lucky buyers would get a gift if they bought right there, and it would try to breakout then. however, breakout buying dictates selling (cutting loss) if price falls 8% below buy point, and waiting to buy back next attempt.
Summary: know the story. company looks good, etc. i think it will breakout this round, small certainty of a stall in $78-75 range, either way it eventually moves forward. in event it test low, i still think it will come back, but that is the uncertainty in the situation, with respect to timing.
the horse will run ... and the horse will run FAST ... and they're off!!!
Regards, JB |
