Tuesday, July 29, 2014 6:04:45 AM
Might ride the descending support (formerly resistance) down.
Visual aid for the below.
I had mentioned this possibility. So far, beginning with 7/23, the day's lows have been doing that - see descending straight red line.
But we had a higher close on rising volume on 7/28, so I expect today we'll see a change in that. We need to move up and test the resistance of the descending channel (straight yellow lines) and the upper Bollinger limit (orange lines). It's concerning that the latest leg up didn't do a full channel swing up before starting lower again.
Likelihood of change is increased as we should encounter a potential longer-term rising support trend line (rising straight red line) today at ~$1.34. I say potential because it's only got the origin, low of 12/13/13, and two subsequent tests, lows of 5/9/14 and 7/17-7/18/14. The first test had good volume and held but the second had low volume and had intra-day penetration both days, although that also held since it closed above on the second day.
But that second test also forms the first set of tests of my short term descending channel support (descending straight yellow lines), which originates at the low of 6/13/14. Until we get a second test of that trend line we don't know if it's really support.
Hey Capt! I think we're going into consolidation again!
OTOH, like they say about (my) old age - "it's better than the alternative"!
MHO,
Bill
Visual aid for the below.
I had mentioned this possibility. So far, beginning with 7/23, the day's lows have been doing that - see descending straight red line.
But we had a higher close on rising volume on 7/28, so I expect today we'll see a change in that. We need to move up and test the resistance of the descending channel (straight yellow lines) and the upper Bollinger limit (orange lines). It's concerning that the latest leg up didn't do a full channel swing up before starting lower again.
Likelihood of change is increased as we should encounter a potential longer-term rising support trend line (rising straight red line) today at ~$1.34. I say potential because it's only got the origin, low of 12/13/13, and two subsequent tests, lows of 5/9/14 and 7/17-7/18/14. The first test had good volume and held but the second had low volume and had intra-day penetration both days, although that also held since it closed above on the second day.
But that second test also forms the first set of tests of my short term descending channel support (descending straight yellow lines), which originates at the low of 6/13/14. Until we get a second test of that trend line we don't know if it's really support.
Hey Capt! I think we're going into consolidation again!
OTOH, like they say about (my) old age - "it's better than the alternative"!
MHO,
Bill
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