Sammy, on BNYN, you had a breakaway gap...Basically, we are at the beginning of BNYN's price move, it has just broke out of congestion in the 4.00 area...Next gap would be called(if there is one) the Continuation or Runaway gap, and then when everyone is tired, the Exhaustion Gap, signaling the end of the upward trend(in this case)...
An island reversal usually occurs at the end of an intermediate or major upmove, following an exhaustion gap...An island kind of sits there all by itself, saying, we can't go any further boys, in this direction, it is time to reverse....Then you usually see a breakaway gap in the opposite direction of the present trend...
The reason I bailed on BNYN for the time being was because of overhead..I felt it would hit its head in the 6.50 area, and spend time muddling around between 5.62(gap area) and 6.50, and wasn't worth
hanging around for...I should have waited to drain another 3/4 of a point before bailing...But like I said, I trade to learn and improve,
each stock teaches me a lesson....Until I get my CD Rom fixed I cannot tell you about the overhead situation in BNYN...Hopefully, by Monday, when my friend comes over, I will be back in business...For a technical trader 2 years of data doesn't do it, I like to go back at least 7 years...BNYN is a good long-term hold for an investor..
Regards, Mark |
