Enteromedics Inc (ETRM)

[Citrati]

Agree with your statements for the most part.
For me, I always exercise caution when there is a double gap up. Whether by shorts, market structure, or whatever, it seems the higher gap often fills. Price is approaching that now.
I have been waiting before loading the boat until resolution one way or the other.
The squeeze, after the R/S, overheated the move and was unsustainable if only because of extreme profits too quickly. It is a good thing to cool off, build a solid foundation and then a more orderly and supported move upward. The small share structure will create enough volatility...lol.

So much to look forward to.

http://stockcharts.com/h-sc/ui?s=ETRM&p=D&yr=0&mn=4&dy=0&id=p08337118051
The gaps in volume by price bars as well as the lack of buy/sell balance are significant.
It illustrates perfectly the lack of support above 8.50 and the'I better take profits' attitude in the more balanced (due to selling) longest volume by price bar which is now major support/resistance battle zone.

The issue at present IMO is the interaction of building a new base/support and coming news. It should resolve fairly soon. The fact that most of the recent red candles have poles and then closes near the days low suggests a bit more down before support is found. News or anticipation will soon help put in the new bottom.
General markes and IBB may be close to rolling over and may add some drag as well. We shall see.

All IMO only. One persons perspective and not intended for advice or recommendation of any kind.
Green Trades
ETRM