AI
Thursday, January 08, 2015 7:48:53 PM
ISNS daily - the story sounds good. I like where it's at on the bollies, would like to see it hold this channel.
I don't like triple bottoms, not even slightly. There probably has been enough time since the last test of $2, that it may hold? If it drops out of that channel? I'd watch for a long drop.
My observation is that the more often a support level is re-tested, the less likely it is to hold. The people who are buying at a certain level, will eventually get what they want. If the price doesn't move up, they will quit buying there, and worse yet, their stops below that support level will help fuel the drop.
The best description I ever heard for support being tested, came from my buddy GB55. Picture it like a fat man bouncing on a bed, eventually, that suckers gonna break.
A recent example of support being tested too often, is IBM. That's why I was bearish on it. It broke too.
I don't like triple bottoms, not even slightly. There probably has been enough time since the last test of $2, that it may hold? If it drops out of that channel? I'd watch for a long drop.
My observation is that the more often a support level is re-tested, the less likely it is to hold. The people who are buying at a certain level, will eventually get what they want. If the price doesn't move up, they will quit buying there, and worse yet, their stops below that support level will help fuel the drop.
The best description I ever heard for support being tested, came from my buddy GB55. Picture it like a fat man bouncing on a bed, eventually, that suckers gonna break.
A recent example of support being tested too often, is IBM. That's why I was bearish on it. It broke too.
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