Craig: Gaps are usually filled. Also, the harami pattern (an inside day after a long candlestick), doesn't look good. It could warn of a top. In addition, volume has leveled off after soaring Monday and Tuesday. Other technical indicators (such as CCI -- the commodity channel index) show that the stock could be ready to reverse. Also, there's strong resistance at 75, the former yearly high, and the stock failed to close above it Monday. However, there's been strong (and growing) On Balance Volume (a good sign), and I suppose the stock could try again to break above 75. So all in all, I'd say: At least you didn't buy at the high Monday, but the stock's very risky right now. Be careful. You might want to place a stop at some point, if you haven't already. Good luck with the trade.
Brooke |
