Saturday, July 25, 2015 10:42:26 AM
TNXP TA thoughts 7/24/15 - Update
I was hoping from my technical analysis, for this stock to test 10$ as I said in my previous posts. However, heavy trading in early morning ( of 7/22/15 ) made the stock climb to 9.89,thereby testing the upper BB and trend line too early and in too short time frame , and bears taking over. Resistance zones and trend lines were clearly marked in my charts to denote 9.8ish as nice resistance area, and for those who took profit at this area, congratulations.
No TA analysis can predict the exact entry and exit points, if someone tells you so, you know that they are underestimating the TA analysis. However TA analysis can predict some range ( like predicting weather pattern ). As you know this stock is on down trend currently ( from last 2 days ), and I am going to list few observations. As I have repeatedly mentioned in the past, this stock is on radar of day traders, and therefore, volatility should be expected.
For those, who missed my previous analysis for this stock, here is the link:
TNXP TA thoughts old
General Updates:
a) The daily chart still show bearish to consolidation symptoms
b) Intraday chart – You would see a nice trendline showing how bears have been riding this stock down. The breach of trend line with pps dropping above upper trendline should be considered end of ‘bears’.
c) Weekly chart as I have said in the past, is still very bullish.
d) This stock likes being in overbought/oversold levels for extended time as we have noted from past. I am not much worried looking at these indicators at this point.
e) Intraday chart will be the first chart to show that selling has stopped for this stock. However, we may see bulls take over in a day or two (which I will explain below on why I think so).
f) Immediate support points would be 7.8ish(very strong support) and 8.0ish (not so strong support).
g) Following would be immediate resistance area for this stock – 8.4ish, 8.7ish and 9.0ish.
h) Intraday chart had a trend line breach today, with PPS breaking the upper trendline (lines marked by ‘A’), and forming a secondary trendline (lines marked by ‘B’). This signifies selling pressure is wearing off.
i) Importantly, I would like you to see how daily candles (as marked) are placed in daily chart for last 3 days. When bears took over on Wednesday, what we saw was opening and closing price follow Fibonacci retracement values. Currently we are at 23.6% zone, from recent high of 10.72 ( June 22 ). And when bounce according to Fib zone happens, this stock will have greater tendency to form pattern(s). A pattern for example could look like below, with each drop and high formed near fib zones. This stock had shown this tendency in past ( Jan – May 2015 ).
This is what I would be focusing on – watching for new pattern formation – in next coming days. Make no mistake here, any positive news can make the stock break any patterns.
My opinion:
Although this was a nice show from bears bringing the PPS all the way from 9.89 to 8.14 ( today’s close price ), bears will not last for long. Keeping in view some of these indicators ( which still shows bearish ) are dominating the game, and considering the fact that price is within secondary trend line, 7.75 – 8.15 could be a nice loading zone in opinion. The range is bigger because volatility is higher for this stock. Another thing to think about it is fundamentally nothing has changed for this company in last 2 weeks, and will protray bullish symptoms on long term.
Before signing off, I would like to repeat not to take my words for granted since I could be completely incorrect. Do your due diligence. Trade smart, and importantly learn from your past mistakes. Buy low and Sell high.
Daily Chart
5 min chart
I was hoping from my technical analysis, for this stock to test 10$ as I said in my previous posts. However, heavy trading in early morning ( of 7/22/15 ) made the stock climb to 9.89,thereby testing the upper BB and trend line too early and in too short time frame , and bears taking over. Resistance zones and trend lines were clearly marked in my charts to denote 9.8ish as nice resistance area, and for those who took profit at this area, congratulations.
No TA analysis can predict the exact entry and exit points, if someone tells you so, you know that they are underestimating the TA analysis. However TA analysis can predict some range ( like predicting weather pattern ). As you know this stock is on down trend currently ( from last 2 days ), and I am going to list few observations. As I have repeatedly mentioned in the past, this stock is on radar of day traders, and therefore, volatility should be expected.
For those, who missed my previous analysis for this stock, here is the link:
TNXP TA thoughts old
General Updates:
a) The daily chart still show bearish to consolidation symptoms
b) Intraday chart – You would see a nice trendline showing how bears have been riding this stock down. The breach of trend line with pps dropping above upper trendline should be considered end of ‘bears’.
c) Weekly chart as I have said in the past, is still very bullish.
d) This stock likes being in overbought/oversold levels for extended time as we have noted from past. I am not much worried looking at these indicators at this point.
e) Intraday chart will be the first chart to show that selling has stopped for this stock. However, we may see bulls take over in a day or two (which I will explain below on why I think so).
f) Immediate support points would be 7.8ish(very strong support) and 8.0ish (not so strong support).
g) Following would be immediate resistance area for this stock – 8.4ish, 8.7ish and 9.0ish.
h) Intraday chart had a trend line breach today, with PPS breaking the upper trendline (lines marked by ‘A’), and forming a secondary trendline (lines marked by ‘B’). This signifies selling pressure is wearing off.
i) Importantly, I would like you to see how daily candles (as marked) are placed in daily chart for last 3 days. When bears took over on Wednesday, what we saw was opening and closing price follow Fibonacci retracement values. Currently we are at 23.6% zone, from recent high of 10.72 ( June 22 ). And when bounce according to Fib zone happens, this stock will have greater tendency to form pattern(s). A pattern for example could look like below, with each drop and high formed near fib zones. This stock had shown this tendency in past ( Jan – May 2015 ).
This is what I would be focusing on – watching for new pattern formation – in next coming days. Make no mistake here, any positive news can make the stock break any patterns.
My opinion:
Although this was a nice show from bears bringing the PPS all the way from 9.89 to 8.14 ( today’s close price ), bears will not last for long. Keeping in view some of these indicators ( which still shows bearish ) are dominating the game, and considering the fact that price is within secondary trend line, 7.75 – 8.15 could be a nice loading zone in opinion. The range is bigger because volatility is higher for this stock. Another thing to think about it is fundamentally nothing has changed for this company in last 2 weeks, and will protray bullish symptoms on long term.
Before signing off, I would like to repeat not to take my words for granted since I could be completely incorrect. Do your due diligence. Trade smart, and importantly learn from your past mistakes. Buy low and Sell high.
Daily Chart
5 min chart
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
