ANGI happened to catch my attention on Friday as $22 is a pretty critical level. It looked for sure that the bottom was in and going to start a trend, but the whipsaw leaves us with some uncertainty as it sold off through the rest of the day with the market. For my readers on Stockineer I decided to do a write up and post a chart so I thought I'd share the summary here.
"Look at all these parallel trading channels in the chart below. This gives you very clear entry and exit locations for your trades.
$22 is the breakdown of the head and shoulders pattern, which gives a price target of $16. That is conveniently located at the lowest trendline drawn. Whether or not the recent low will hold or price will drift to the lower trendline is anyone's guess. The best we can do is follow the channels for our trading signals. Of particular interest is the whipsaw on Friday where price was really rockin' only to pull back to retest the neckline leaving shareholders unsure if the breakout was for real or if it is really about to signal failure.
I hate to make guesses, but if I were to take a shot, I'd say that price will rise through the week and test the upper trendline. I say this because the market is at support and I suspect it'll get a rise tomorrow, not breaking support. The weekly stochastics are oversold and have crossed over. MACD has also turned upward. Of course price has to cooperate. This is an interesting chart and will be useful if you want to take some trades on ANGI. If tomorrow's action is too rich for your blood, leave it. Wait until there's more certainty."
Good luck guys. The chart that I'm referencing is on Stockineer, which I obviously can't post here. I hope this helps understand how ANGI trades.