Wavey train, I guess it depends on who you ask.
Generally, for technicians, it is one of MANY items you would look at for a breakdown in the chart. You might start to look bearishly at the stock when the 200 day is breached.
HOWEVER, there are many factors that a technician looks at. IF you are trading, you would look at several indicators not just a myopic view of one.
First off we have not closed here. Wave can certainly recover easily from this TODAY. IT COULD end the day with a long hammer capitulation type candle signaling reversal with only the people caught in margin caring about the intraday today. IT could also close at the lows and look like a red beacon on the chart.
With that said, WAVX is in an oversold on almost every aspect of the chart from every angle no matter how you look at it. Even breaching the 200 day wouldn't make a NORMAL trader look at this chart and want to continue to short it. IT looks overdone. NORMALLY, Breaching all those oversold points would turn most heads into a buy signal. Normally, looking at technical's, breaching all the oversold point would cause some buying into the close. If we stay below the 200 day, it may make the technicians to wait for a clearer sign that the selling is over.
I agree with WEBY, I think this is the bottom for the time being. I have been good for a month but, I had to break down and buy a little on this dip.
According to the chart, if the the selling subsides later in the day and the MMs allow us to close closer to the open, I would see that as a technical buy. IF we close down at the lows. It may take a little more time for the stock to balance out the buys and sells and have a chance to rise again.
Either way, All on this board are sure of the technology.....eventually that will rule the stock price.
FWIW,IMHO,
In for the long term. See you in September.
Enjoy the day!
VH
