Dan: This is how I interpret the tea leaf of ALYD:
1.Last week, it broke out from a flat base formation to the upside with historical volume which confirmed a moonshot in the making.
2. Last Friday, it had the look and feel of a one-day reversal that failed to materialize (to the benefit of the longs). I would like to highlight the following actions:
"It started early to make an all-time-high of $23 and subsequently tanked to $18.50 due to profit taking. Volume was the 2nd highest in recent history. It had the classic look of a one-day reversal. However, it closed above $20, a critical round number for traders and speculators to lock in long and short term profits. Volume pattern near the close clearly indicated a reluctance to sell. The trading range was 4.5 points."
3.Last Monday, it consolidated with narrower trading range and diminishing volume. The intraday low was well above $18.50.
4.Last Tuesday, it also consolidated with much narrower trading range and lesser volume. The intraday low was well above $18.50.
5.Last Wednesday, it further consolidated with much narrower trading range and much lesser volume. The intraday low was well above $18.50.
6.Chart actions of these 4 days formed a pennant or a tapering flag. Positive readings in on balance volume (more traders hit the "ask" side) confirmed the validity of the observation. Hence I moved in Wednesday before the market close.
7.Yesterday, I continued my quest and it broke out from the pennant formation to the upside. After the market close, news about the SEC filing then FOLLOWED.
At this very moment, I could not tell you that this pennant formation is for real. Formation abortion does occur and we should not blindly demand the completion of this formation. Rather, we should be trend followers and let the market tell us its next move. What is the anticipated extent of its next move? Here we go................
"First flag staff extended from $11 to $23 for a total of 12 points. Breakout of pennant formation occurred at $20. Hence the anticipated move is $32 (20 + 12)"
Dan, I hope I have answered your question. Have a nice day.
Regards,
Mad Monk
PS. This is only a one insane Monk's opinion and should be considered as pure trash talk. Why trash? 'Cause no one is his/her/its right mind should buy this BB garbage now drenched in a sea of red ink, with Reg-S and insiders selling. Moonshot? It is a description for its astronomical PE ratio only, nothing else. |
