BBX has been trending higher since June. Right now the 2 lines between the peaks and troughs are converging. The lines will meet about Sept 14th. This means sometime before then the share price either will break out above or below the current positive trend line. Today those 2 lines are at 6.09 and 6.44. Both numbers will rise slightly every day.
The lines converge in a month at about $6.80. It will either break out above the current trend line or break down and start negatively trending. Since the trend is up, a price that moves sideways will break below the line at some point.
Are there any high volume catalysts in the next month?
BBX has continued to float sideways. Yesterday was the first day that it was unable to get back up to $6.30.
A negative trend line has developed.
The upper negative line is drawn from 8/7 $6.38 to 8/23 $6.36.
The lower negative line is drawn from 8/8 $6.30 to 8/14 $6.25.
To break out of the current negative trend it has to close at or above $6.38.
DMI turned negative on 8/20
The shares started to be overbought on 8/23
Momentum turned negative on 8/24
MACD turned negative on 8/14
The technicals are negative so now is the time to short on any strength.
If you believe BBX can close above $6.38 in the next 2 weeks, you could buy any dips here. The potential payoff would be $6.81 in the next 2 weeks. However, I currently see no near term catalyst to promote large positive volume.
If the stock continues to basically float sideways or lower, the overbought shares will be sold and confirm this negative trend with a price below $6.08.
Centurion, I think we have to give some credit to Free for some volume in BBX today. I think some hedge fund managers must have read his analysis and started piling in because "today is the day to buy BBX."