lowtrade

[lowtrade]

It has 2 chart patterns. An Island reversal and single bottom bounce.

The bottom bounce has reached top resistance, saying the move should stall or end. I'm not a big fan of emotion moves, which this one is. Most parabolic pops reverse quickly when the emotion leaves and logic trys to figure out new true value.

I'd doubt it will continue into the $6 gap area and climb for 10.25 target personally. Mainly for 3 reasons. 1. Emotion corrects quickly. 2 bottom bounce target was reached. 3 the second day volume is half the first.

I'd recommed caution and say once again. Take profits when they present. That's the first red day following an exhaustion candle spike. IMO it spiked and while today wasn't red, it didn't have a strong second day volume showing support for continuation.

The positive to all this is my "Rule of Thumb" for Island Reversals. That volume out needs to equal volume in. And this one has that. I'm just not sure it will make it to $6 and enter the gap area at all. That's where I'd start felling a little safer.