My theory is that the price gapped up on short position covering the day after ER. The short interest was over 20 days last I checked before ER. So the earnings report squeezed out some of the weaker shorts. There are still shorts left but obviously they are not going to cover yet and decided to hold through. As I see it the fuel for the upside has run out and the stock slowly fades back to the pivot.
The recent action has shown that institutions are not interested at supporting the stock at this price. But looks like it found support on the 20 DMA.
I was holding the stock from $74. And sold at $78.67as it was falling below the gap up price as I am not really looking to hold through another consolidation. I might be wrong but I expect the stock to go sideways till next ER (institutions will be giving support at some level but will not be pushing the price higher).
Thanks for your thoughts. I wish this board would be more active but then that would bring a ton of bashers. Bought at $43.536 Thinking of selling and getting back in at a lower price but it seems like every time I do that with a position, it backfires.