Albert, remember one thing, charts and T/A are only tools, it is fundamentals and events that drive a stock.
On Friday the S-1a was the first real indicator that the big boys stepped up to the plate investing $5.4 mill. That $5.4 mill represents a minimum of between $4 and $5 dollars per share. Usually that is indicative of fair price valuation in their eyes of prices 15% higher making FTEL a $4.60 to $5.75 pricing range until further news is forthcoming.
The $3.50 that David is referring to is the last support area. But the 50 day moving avg has now extended past that support area making the first level of support at $4.00. Also using the mid July low of $2 and extending a line off past the $3.50 support level we would extend out exactly to where we are now. So there are arguments to be made. Like I stated in an earlier post, T/A needs supporting criteria from many other factors to hold water and right now we have to many conflicting indicators to lend credence, especially in this type of market.
Right now the general market is without direction, therefore making any type of T/A and ensuing trading strategy nothing more then a roll of the dice.
This is not a traders market, period.
If you want to get burned try to out guess this market and you will soon need some ointment and gauze, not just with Franklin but with any stock. This is a market where caution your guide, value is the objective target, and preservation of cash is top priority.
Not the type of atmosphere that is condusive to a novice's schooling, unless the school of hard knocks is where you seek your diploma.
Don't want to sound like I'm preaching, but there are better times to apply T/A, and those times are when a definite trend is in place, and now ain't the time.
Capiche?
rb |
