Harry, that's exactly my point. Retail folks bought near the 1st leg highs above 6 and dumped at 4 3/4. Their reasoning went like this: "BBA was under 4, ran to 6 1/8 and now it's going back to its previous bottom. I'm bailing now while I can." As soon as the selling dried up, buyers pushed the stock back to n/c for the day. As to my starting point for 62%, I used the first day of the runnup (5/22) to its peak (6/12) and took 62% of that. Answer? 4 3/4. At least that's what my chart shows. For confirmation, notice that the stock closed near the high on 6/30, perhaps signaling a turnaround day (also high volume). It doesn't hurt that the stock closed at its high today. The only weak link was today's volume. I like to see more but we'll have to wait a week or so for same store sales.
While I use ta regularly in my investing, I violate the rules frequently in that I don't wait for confirming signals. If I think I see something early on, I take a starter position and then watch like crazy, adding as confirmation proves me right or selling if I'm early. I don't trade in and out. In BBA's case, I was already a player before the runnup began. Because of my review of the chart, I see the jumping off point around 12. We've got a long way to go but, given this stock's history of fast moves, it could happen before the end of the year based on what I know about the fundo's of BBA.
Arnie |
