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I see the last few minutes of today's trading as a sign that they want to get that throw-down on Monday morning. But you are right...it would be quick, and once they let it go, getting a buy below 1.50 may be impossible. I'm going to have an order set at 1.40 before the bell...just to see what I get (if anything).
I agree with pretty much all of your analysis except the open on Monday. I think the MM's will use today's downward momo to gap it down and see if they can get that touch of the 50-DMA. Then they'll let it go back to 1.80's in a hurry.
Yep...LOTED = boing!
Bought a LOTED starter at .955. See if she wants to go back up over $1 or continue down to the 200-DMA for another buy. Fingers crossed.
It's changing too fast at the moment to be useful as a screen shot. .75 support taken out. Looks to be headed into the .60's fast.
I'll keep watching the charts and posting them here. The only thing I'm playing with at the moment is the volatility in FNMA while she consolidates after tha last big run.
FNMA... the $2 test is coming up.
...and "boom" back above $2
Um, really? Gapped down...a bunch of people bought 1.40's and 1.50's and are now "trapped" in the 1.80's.
Hate those traps
I think the weekly chart on EEDG may be more helpful than the daily. It looks like the .008 range acted as support a long time ago, but in late 2011 and early 2012. But even back then, it broke below for a few weeks.
If it were me trading EEDG, I'd probably wait until that daily chart breaks above the 20-DMA and closes above for a day or two, flatting out that 20-DMA which is in a downtrend for a long time. It looks like the price has had a hard time breaking above that moving average:
We were forced below the 20-DMA at 1.58, and now price is sling-shotting back up as ARCA moves to the bid side for some covering. The chase is on.
That's currently the 20-DMA, so I'd expect some serious support in that area. If the prices manages to drop below, then 50-DMA is at $1.11 but I doubt it will break far below that. Of course, there's the "psychological" share grab that could happen at a break below $1. That's where the MM's force the price below $1 to break the will of those who have a round number set as their stop-loss, then they grab all the automatically generated sells and let her go back up.
I seem to remember a lot of the same discussion back in March, which is what fueled that initial run. I think that when she consolidated and then made a strong move over $1, the bigger fish were ready to join the fray. Thus the increased volume.
I do think that any move as big as what we saw-- .85 to 5.44, will be followed by some level of consolidation because there is a lot of profit to be taken here, and once the profit is taken, I'm betting those same big fish buy a larger number of shares on the pull-back, so they can ride it again. Wind it up
If this were any other, standard OTC stock, I'd figure it was ready to drop down to where it started with a few bounces along the way...but we're talking a multi-billion dollar company...not a guy in his garage promising to find gold in South America.
Thanks for the chat! Happy trading!
$5.44 to $1.60 is exactly a -70.588% pullback. Thus saith the calculator
At least, that is the percentage drop from the top to today's low.
Yep, the first run in March took FNMA up to 1.47 and then a -65% pull-back to touch the 20-day moving average at .51. She bounced from there to the upper bollie around 1.00 and then consolidated until the 2nd run. Up to $5.44 and then a -70% pullback to today's low of 1.60
Give it a couple days, and we'll probably see a touch of the upper bollie before settling into a consolidation pattern again. That's my guess, based on the chart. If she gets a big dip below the 20-DMA, then the 50-DMA should hold up like a champ:
Let's see if she wants to touch that upper bollie next
What I'd guess is that she's going to take a regular consolidation pattern like she did after the first run. She ran above the upper bollie (usually a sign that it's going to fall hard), then down to the 20-DMA, then to the upper bolllie and then leveled out.
FNMA approaching 20-DMA. Trying for a buy at 1.65
.... got it! Now let's see if that moving average gives us some support for a bounce. I wanted to get in a bit early because it is HARD to get filled on the way back up. Better to buy on the way down