AI
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| Alias Born | 10/27/2003 |
Friday, August 24, 2012 1:04:24 PM
Hey Carmine,
Sorry about not telling you to buy more the other day.
When in an uptrend, I usually only buy on pullbacks on the 60 minute chart, ideally with the price bouncing off of a support line or moving average like the 20EMA.
The daily chart is just starting to confirm the reversal. We want to get above the 20EMA on the daily which is currently at $8.97. That will give us some nice support as the stock moves higher. There is horizontal resistance at $9.50, psychological resistance at $10 and if/when we break $10.88, that would be a nice breakout level.
On the 60 minute chart, annotated below, we are approaching what I call a directional decision point. We will probably get there next Monday unless something else acts as a catalyst to break the trend one way or the other. The share price is riding a new supporting trend line towards $9.00 ever since bouncing off of the double bottom at $7.50. This support line (in yellow) is converging with the upper trend line (thin blue line) of the descending channel we've been trading in since July 27th. There has also been some support/resistance in the low $9.00 - $9.05 range which may cause either a stall or a breakout depending upon how much resistance we hit at that level. If the price continues to trade like it has, we might get a bit overbought at that level and might expect a pullback before breaking out of that channel and moving higher.
In summary, I wouldn't be adding or shorting a position right now since we're kind of in a cruise control mode until Monday. If you're one to gamble, you might want to wait until near end of day today to see if buyers or sellers step up and push the price in their favor before the weekend. That's not usually how I trade, so I'm just watching my current position right now. I'll let you know when a technical buying opportunity presents itself.
Sorry about not telling you to buy more the other day.
When in an uptrend, I usually only buy on pullbacks on the 60 minute chart, ideally with the price bouncing off of a support line or moving average like the 20EMA.
The daily chart is just starting to confirm the reversal. We want to get above the 20EMA on the daily which is currently at $8.97. That will give us some nice support as the stock moves higher. There is horizontal resistance at $9.50, psychological resistance at $10 and if/when we break $10.88, that would be a nice breakout level.
On the 60 minute chart, annotated below, we are approaching what I call a directional decision point. We will probably get there next Monday unless something else acts as a catalyst to break the trend one way or the other. The share price is riding a new supporting trend line towards $9.00 ever since bouncing off of the double bottom at $7.50. This support line (in yellow) is converging with the upper trend line (thin blue line) of the descending channel we've been trading in since July 27th. There has also been some support/resistance in the low $9.00 - $9.05 range which may cause either a stall or a breakout depending upon how much resistance we hit at that level. If the price continues to trade like it has, we might get a bit overbought at that level and might expect a pullback before breaking out of that channel and moving higher.
In summary, I wouldn't be adding or shorting a position right now since we're kind of in a cruise control mode until Monday. If you're one to gamble, you might want to wait until near end of day today to see if buyers or sellers step up and push the price in their favor before the weekend. That's not usually how I trade, so I'm just watching my current position right now. I'll let you know when a technical buying opportunity presents itself.
