Strictly Buy and Sell Set Ups Message Board

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Strategies & Market Trends : Strictly Buy and Sell Set Ups

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To: bluezuu who wrote (11722)	3/27/2007 12:58:04 PM
From: chowder	Read Replies (1) of 13449

Re: TSTC ... I agree, the gap wasn't very bullish. It would have been if price closed above the opening price. However, that doesn't mean one should give up yet. First of all ... the gap. Back in February, price gapped down in price, below a former base of support. That gap between $9.25 and $9.75 represented a price range that had a lot of overhead supply waiting to come to market. Why? Because when price gapped down towards the end of February, it left a lot of share owners with losing positions. The narrow range bars clearly show they didn't sell. They were hoping for a rebound that didn't come. So they ended up praying for price to come back up and make them whole, so they could sell and get out even. It was those people who sold into the gap you saw a week ago. Some of that overhead supply hasn't been resolved yet. An entry point? Several options. Today, if price can move above yesterday's high of the day. If that doesn't happen, then tomorrow if price can trade above today's high of the day. If that doesn't happen, then watch how price responds to support around $8.00. The best low risk, high probability entry is to wait until price moves above the 50 day moving average.

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