There are folks on this thread who have a much broader tech perspective than I do, Jonathan. I hope they will offer their perspective.
I sold on the open a week ago Friday. ACRT was being chased without large block support. Could have been shorts covering, or a combination.
Last week, I had some support points pegged. I pick the low of the day of any breakout to a new high from a prior resistance point, particularly where it corresponds closely to a former "top". 14 to 14 1/2, 12 to 12 /14 and 10 look like the points. So far, 12 held. It did it in a way I find significant, and if I were a day trader, I would have bought the gap down open on Friday. 12 1/8 held twice during the day and we closed strong. If that is retested again, I'll buy it and put a tight stop underneath it, likely at 11 1/2. I may miss it, but that's the way this game works. If it doesn't hold, next stop is 10, and 7 below that, of course.
That's pretty simplistic, but that's what I'm looking at. Also the 200 day moving average above 10. I don't like the volume on Thursday. Friday's volume would be fine if Thursday had been lower. Of course, the float is small enough that we may have shaken all of the weak hands out.
I might also look for a trading range to form. Once that firms up, wherever that may be, I'd try for the low end. Volume would have to be fairly dry at that point, however.
Since it broke out again at 10, this stock has not moved in a way that gives me much comfort technically. It's corrections have been far to dramatic, without enough rest.
I'm very cautious, and trying not to fall prey to the urge to chase it. Especially with the NASDAQ under some pressure and tons of high 90's EPS stocks getting killed. Look at PEGA, CLDR, PERI, DSWLF, RMDY, PSFT, INTC, etc. There are some great stocks getting hammered.
I would really appreciate other perspectives. Hope that give you some flavor of my view. |
