Wednesday, July 29, 2015 5:30:42 PM
TNXP TA thoughts 7/29/15 - Update
From last few days, I have been watching this stock closely. As you may be aware, I let you know what my strategy would be in the hope that someone may benefit and can apply to their present trading skills. I was hoping for bulls to take over today, however, it hasn’t happened yet. Next two days are going to be crucial for this stock. Based on what I see, we could likely see bullish movements from here on.
For those, who missed my previous analysis for this stock, here is the link:
TNXP TA thoughts 7/24/15 - Update
General Updates:
a) The daily shows bullish to consolidation symptoms.
b) We have a new trend-line formation as we predicted in our hourly chart. I have entered a new position at bottom trend-line today. Hourly chart hasn’t made up its mind on whether to go bearish or consolidate or go bullish here. This is a normal behavior when stop drops more than 20% in few days.
c) 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’.
d) Weekly chart as I have said in the past, is still very bullish.
f) Immediate support points would be 7.8ish(very strong support) and 8.0ish (not so strong support). This we have already established in the past. Lower trendline could act as solid support.
g) Following would be immediate resistance area for this stock – 8.4ish, 8.7ish and 9.0ish.
h) Now the question is where this stock moves to from the current PPS.
Points favoring consolidation:
1) Let us rewind couple of weeks, and ask ourselves what made this stock go up from 7.5$ to 9.89$ in span of 2 weeks. The answer would be POC, Form 4 and seeking alpha articles…. With the offering, TNXP is ready to proceed with their next trails. Before the offering price, TNXP was trading around 8.2-8.5$ (consolidation zone ). Hence this could be treated as consolidation range.
2) Above point also highlights that this stock likes news update from TNXP team.
Points favoring bullish Movements:
1) This stocks likes to leave some footprints telling the possible future movements. One such footprint is formation of ‘patterns’. TNXP just love making and breaking patterns. I have drawn on hourly chart, a triangular pattern.
2) This stock is very impatient ( i.e volatile ). It just likes to move around. Considering we had a 20% drop, the chances that bears dominate here is slimmer.
3) There is big drop in selling pressure, as you may witnessed in last 2 days. This also would mean, the volume would be lower than last week, but 'significant'.
4) Anticipation of +ve trail results.
My views:
7.75 – 8.00 still remains nice loading zone in opinion. Basically I am looking to load near the lower trendline. Whenever PPS moves around 8.7$, I would be watching the action closely, and may opt to sell some shares.
Fundamental analysis, charts and my analysis favor consolidation to bullish movements (with bullish movements more likely in short term).
We saw lower trendline being tested multiple times, and trendline is still holding our PPS. I cannot say the stock can move 10% or 20% in next few days, but I hope this stock to be hovering around this pattern. Basically, I am play this stock according to charts at this stage. Any move below 7.75 would be bearish, so that would be my stop loss position.
There is ‘change of sentiment’ visible in the chart formed today. The change of sentiment would go through tight price zone (yesterday today and another couple of days), before big players can make this stock bullish. I would explain about this more on this in future.
Overall, i believe this stock is low risk/high reward at this time. Any news around this stock would make it climb to 9$.
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. In the coming days, I would slowly introduce other indicators I look for, to predict some movements.
Hourly chart
From last few days, I have been watching this stock closely. As you may be aware, I let you know what my strategy would be in the hope that someone may benefit and can apply to their present trading skills. I was hoping for bulls to take over today, however, it hasn’t happened yet. Next two days are going to be crucial for this stock. Based on what I see, we could likely see bullish movements from here on.
For those, who missed my previous analysis for this stock, here is the link:
TNXP TA thoughts 7/24/15 - Update
General Updates:
a) The daily shows bullish to consolidation symptoms.
b) We have a new trend-line formation as we predicted in our hourly chart. I have entered a new position at bottom trend-line today. Hourly chart hasn’t made up its mind on whether to go bearish or consolidate or go bullish here. This is a normal behavior when stop drops more than 20% in few days.
c) 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’.
d) Weekly chart as I have said in the past, is still very bullish.
f) Immediate support points would be 7.8ish(very strong support) and 8.0ish (not so strong support). This we have already established in the past. Lower trendline could act as solid support.
g) Following would be immediate resistance area for this stock – 8.4ish, 8.7ish and 9.0ish.
h) Now the question is where this stock moves to from the current PPS.
Points favoring consolidation:
1) Let us rewind couple of weeks, and ask ourselves what made this stock go up from 7.5$ to 9.89$ in span of 2 weeks. The answer would be POC, Form 4 and seeking alpha articles…. With the offering, TNXP is ready to proceed with their next trails. Before the offering price, TNXP was trading around 8.2-8.5$ (consolidation zone ). Hence this could be treated as consolidation range.
2) Above point also highlights that this stock likes news update from TNXP team.
Points favoring bullish Movements:
1) This stocks likes to leave some footprints telling the possible future movements. One such footprint is formation of ‘patterns’. TNXP just love making and breaking patterns. I have drawn on hourly chart, a triangular pattern.
2) This stock is very impatient ( i.e volatile ). It just likes to move around. Considering we had a 20% drop, the chances that bears dominate here is slimmer.
3) There is big drop in selling pressure, as you may witnessed in last 2 days. This also would mean, the volume would be lower than last week, but 'significant'.
4) Anticipation of +ve trail results.
My views:
7.75 – 8.00 still remains nice loading zone in opinion. Basically I am looking to load near the lower trendline. Whenever PPS moves around 8.7$, I would be watching the action closely, and may opt to sell some shares.
Fundamental analysis, charts and my analysis favor consolidation to bullish movements (with bullish movements more likely in short term).
We saw lower trendline being tested multiple times, and trendline is still holding our PPS. I cannot say the stock can move 10% or 20% in next few days, but I hope this stock to be hovering around this pattern. Basically, I am play this stock according to charts at this stage. Any move below 7.75 would be bearish, so that would be my stop loss position.
There is ‘change of sentiment’ visible in the chart formed today. The change of sentiment would go through tight price zone (yesterday today and another couple of days), before big players can make this stock bullish. I would explain about this more on this in future.
Overall, i believe this stock is low risk/high reward at this time. Any news around this stock would make it climb to 9$.
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. In the coming days, I would slowly introduce other indicators I look for, to predict some movements.
Hourly chart
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