Where Are We on Pullback? Some Short-Term Technicals
For those who watch these sorts of things...
On the 30-Minute chart, we've retraced nearly 50% of the pop that started on the 5th. Stochastics are now way oversold on a second dip. Money flow is diverging in a positive direction since yesterday's low. Today is accumulation. Smart money buying from weak hands, and from the Toddler.
$3.12 to $3.14 puts you at two different retracement levels, depending on which bottom you use. $3.12 is a 50% retrace from the 5th. $3.14 is a 38% retrace from a bottom before that.
It'll likely pop before it gets anywhere near Toddler's break-even point on the two $3.00 puts he bought.
Is it gonna pop higher here? How many shorts are shorting because they think this is just a dead cat bounce? They've already forgotten about the massive surge on high volume, and are ignoring the fact that the retrace occurred on lower volume. Perspective is essential to successful entries and exits and most shorts don't have any perspective.
I should add that volume today is much lower than yesterday, evidence that the selling is petering out. Don't let the Toddler scare you as he throws his little temper tantrums. That's what Toddlers do, until they grow up.