TLAB has a bearflag on the daily chart from this week. Looks like it may have put in a little short term support around 8.45, but any break of that the bearflag breaks down and it could easily go to 8 or lower, as the last bearflag that broke in mid april knocked it down a buck. At 8.70 now it's got resistance from where it broke down around 9, and heavier resistance around 9.70 to 10 and on and on all the way up.
Every bounce in that stock since January has led to a lower low. Which tells you many are trapped and selling every rally heavily, so the chances of a good move are minimal.
The only good chance of making money is if for some reason there is a short squeeze in telecom on news. TLAB short interest looks pretty high right now. But I doubt it lasts long...everyone who thought the bottom was in in telecom a month ago has gotten killed.
Don Sew has class 2 buy signals, calling for a small oversold bounce this week. If we have another down day, they may upgrade to class 1 which usually sparks a nasdaq rally of 75 - 100 points. The last one, only a week or so ago gave us about 50 points, a drop and then another 20 or so which was immediately given back. So rallies are not what they used to be, just nervous shorts. No follow through period, just tanks or drifts down after topping out at resistance.
So you might get a small bounce on short covering but I'd take any profit and run for the hills, as now that the nasdaq has totally broken down, and any and all resistance levels will be shorted until those broken support levels are broken in force to the upside.
Which means every single bounce to EMAs on just about any time frame, every past broken support levels etc. Overhead resistance is now huge on the nasdaq, and support is practically nonexistent. We can't keep going straight down without a bounce here and there but I wouldn't trust a bounce for more than one day. Not one rally has had follow through in months, and have been nothing but short covering.
Which is why they never hold, the shorts cover, wait for the top and bop them all over again.
Everyone is calling the nasdaq so oversold. It's not. Not even close, and in past selloffs has remained oversold for months at a time.
Back to my garden it's gorgeous in New England today <g> |
