Sunday, August 13, 2017 8:28:24 PM
INMG chart notes
last week this completed a consolidating cup pattern that began with the flag that was formed in April. now comes the continuation with the forming of the handle.
generally speaking, a healthy pullback is roughly represented by the 38.2 fibonacci retracement -- .0225 -- and the less time it takes to form the handle, the bigger the move. of course, those two factors are more in line with the big caps, where the volume help the pattern conform to the shapes of the play. here, in pennyland, pullbacks are most likely to have technical tests of the 5 and 10 day moving averages, and the fib to watch is the golden ratio of 61.8%. that would bring INMG back to .0173. .017, btw, was a point on the chart in mid-late June.
on the chart, the volume has dropped, the momentum has lessened, the sto's have turned down, and the accum indicators have shown retailers selling -- most likely to lock in their profits. longs don't move stocks. traders do. a good trader will often lessen his (or her) load after a stock pulls back if only to protect their investment. they'll then reload, and in that process they will be averaging up, not down. longs get the benefit, too, of traders selling because they get to further accumulate. all in all, when a stock trades well, its a win-win for everyone. this one has been a good trading stock, with just enough volume to keep it on the uptrend, and just enough sellers to make it liquid. in any case, none of the indicators show any signs of an over-correction, and chartwise it will be better for the coming run if the rsi resets a little lower. as is, this is playing out quite well. news is coming.
in the menatime, i suspect this will test the 10 ma shortly.
last week this completed a consolidating cup pattern that began with the flag that was formed in April. now comes the continuation with the forming of the handle.
generally speaking, a healthy pullback is roughly represented by the 38.2 fibonacci retracement -- .0225 -- and the less time it takes to form the handle, the bigger the move. of course, those two factors are more in line with the big caps, where the volume help the pattern conform to the shapes of the play. here, in pennyland, pullbacks are most likely to have technical tests of the 5 and 10 day moving averages, and the fib to watch is the golden ratio of 61.8%. that would bring INMG back to .0173. .017, btw, was a point on the chart in mid-late June.
on the chart, the volume has dropped, the momentum has lessened, the sto's have turned down, and the accum indicators have shown retailers selling -- most likely to lock in their profits. longs don't move stocks. traders do. a good trader will often lessen his (or her) load after a stock pulls back if only to protect their investment. they'll then reload, and in that process they will be averaging up, not down. longs get the benefit, too, of traders selling because they get to further accumulate. all in all, when a stock trades well, its a win-win for everyone. this one has been a good trading stock, with just enough volume to keep it on the uptrend, and just enough sellers to make it liquid. in any case, none of the indicators show any signs of an over-correction, and chartwise it will be better for the coming run if the rsi resets a little lower. as is, this is playing out quite well. news is coming.
in the menatime, i suspect this will test the 10 ma shortly.
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