I think there would be big trouble under 5. On the way up, there was a gap in early June between approx. 5-1/16 and 5-1/4. If you believe in gap theories, it should trade down to close that gap. Anything below that, however, could spell trouble.
From a volume standpoint, KKRO has been falling from 6-1/2 on substantially lower daily volume than on its way up. You can make the case that this is a normal pullback amidst an overall rally.
Furthermore, I think when it shot up to 7-1/2, it may have gotten a bit ahead of itself, as evidenced by the moving averages. Throughout the rise from 3-1/2, the 200-day MA has always been above the 100-day MA which has been above the 50-day MA. In a classic rally situation, the 50-day MA is above the 100-day MA which is above the 200-day MA. Now we're seeing the three MAs converge, with the 50-day MA recently breaking above the 100-day MA. As the weeks go on, the 50 and 100-day MAs should break above the 200-day MA and volume should pick up, if there really is a rally.
Right now the Kook is kicking it at 5-7/8 x 5-15/16 on 312k volume.
BTW, isn't KKRO due for a quarterly earnings (losings) report? |
