Another ugly BEAS chart. Yesterday's was ugly too.
Because if you chased this thing today, and didn't get out before that bearish reversal you were cooked.
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All stocks return to their 20 ema sooner or later after a parabolic move...
I won't touch this again - long or short - until it finds a new support level (most likely a strong support level from a year or so ago) and bases for a while. It's too bad, I love the stock. A few weeks to heal at least, as a lot of damage was done to a healthy chart that was putting in a good long base for a healthy move up. If you chased this thing today, and didn't get out before that bearish reversal you were cooked. And there was no bounce to get out once it broke down. No short term support, whatsoever!!
nothing but parabolic emas to hold it.
That bullflag the past two days was deceptive, as usual, as it must have looked to many that it might head down to fill a gap - or two. I'm sure the shorts were all over it at yesterday's close, which was why I though it was nothing but a short squeeze this morning.
The first one, the breakaway gap may go unfilled, but I would not be surprised at all to see the second one fill, bringing it back to 19 even if just for one moment during a slam.
20 might hold for awhile, as even numbers are often psychological support and resistance.
That first gap up may fill eventually, but from a higher level like it did last summer.
I will never forget being told by a trader on SI, when BEAS was at 80 that it would, eventually go back and fill a gap around 20. I laughed, and said no way. They were so right, It filled that gap and went to 10.
What a lesson! |
