. And lastly, as if we needed anything more bullish, all of the gaps have been filled!!
Equity,
Thanks for the read, I liked it...much appreciated.
I beg to differ on a couple minor points though that might help with an entry.
Technically, the high on 1/16 was $2.125, and the low on 1/17 was $2.312... todays low was $2.218. Though we did throw the bottom shadow on todays stick into the gap support, I don't think we closed it completely. Maybe it's good enough, but this stock has been religous about closing these gaps all the way. Buying a quick strong move down here could prove to be profitable... A close below the gap would not be good either.
I also think you guys are looking at a Bullish Pennant, if I'm reading the formation correctly...
chartpatterns.com
regardless, a break is imminent and I think you're right... especially with the strong move in the indices today. A variety of indicators signal the broad market should be catching up with the leaders in short order... we can only hope. Interestingly enough I notice that the Chaikin Oscillator has been diverging with price since the 19th and moving up, another sign of reversal, and one of my favorites with this stock. The 50 dma looms large here... we need a convincing CLOSE above it I think before we move out.
See how important the 50DMA is here to this stock...
stockcharts.com[L,A]DACLYIMY[DE][PB50!B200!F][VC60][IUB14!LA8,17,9!LF!LG!LC20]
Maybe trying to time an entry just right and catch a bottom for the next leg up is foolish...shooting for bottoms usually is. The responsible move would be to watch the broad market, and wait for the breakout to occur... getting the fill on the gap would only show strength I think, but trying to buy it might mean missing a fill...then chasing.
One more day in the apex with a lower shadow to close the gap would do it for me though... <gg> Pullbacks are good sometimes. I think we're getting a changing of the guard here as the new buyers take positions. I like the nice solid uptrend. I can't stress enough how important I think that resistance is at the 50 though.
Anyway, thanks again for sharing. Good luck and good trading. |
