brk,
Popbottlerocket! Went from a Donna stock to a card-carrying pig in about three days! <gggg>
No guts no glory, I guess.
On the daily chart, there are no sell signals yet, so you'd have to conclude from that chart that a short was premature here, unless and until it showed signs of weakening:
askresearch.com
Only thing I can see to encourage a short position on this chart are:
1) Stochastic has widened, and slope decreased some (starting to bend over) as it ascended into extreme overbought land.
2) XLA is testing the declining 100 day ema, which should provide stiff resistance here. And, XLA does seem to be feeling this resistance, as evidenced by the fairly tall shadow on top of today's real body.
But on the intraday, things look different:
askresearch.com
MACD sell signal now, but it appears to me like this one will be real. The last MACD sell signals occurred with a rising OBV, but now OBV is falling, and so is Williams. Also, the stock has gotten way ahead of its moving averages. This is not the first time this has happened, however, and there is the problem: the last few sessions, the stock has "corrected" by moving sideways towards its moving averages, but took off again before ever testing them. Will it do so again?
I'd be inclined to think that XLA will not, and will weaken further here and correct down. But I'd be ready to cover on a breakout above 13, where it has found resistance most of the session. And particularly so if the breakout occurred with bullish candles, on strong volume.
Good luck,
WS |
