Oh c'mon attymdmnola, I have other stocks that I'm watching. I can't be everywhere at once, now can I? Cheer up! I'm here now, am I not? Better now?
Sorry, but I really don't keep tabs on my posts. I can tell you that if I said it was "extended", that typically infers that it is a poor place to make a purchase, due to pull backs that are imminent. As a stock approaches 25% thru 30% after a breakout, that qualifies as "extended". Technically speaking, 10% above a breakout is "extended".
Going to stick out my...neck again.
It appears that ARUN just may be approaching a "double bottom" pattern, like a "W". The catch? The current "leg" should continue in its downward trend and pass the current low of the first leg, which is $18.35. This is intended to shake out many of the hangers' on; the fear that ARUN will go lower will predominate and they will capitulate. This sets up the rebound.
The problem? No telling where the rebound will end. They can continue past the $twenty-two and eighty and just keep going, or fold up and begin a whole new pattern. Watch the volume to confirm the momentum and conviction of the leg up. When the volume decreases on the upside, it could mean that the rally is over; if ARUN begins to falter and "nose over", you'll be able to tell by the volume. It is there that you might sell a little of your holdings, to lock in your profit.
Now, should this pattern unfold unabated, it would be ideal if it undercut the $18.35 by a dollar or two: no more. If it goes lower on HIGHER than normal volume, the pattern is negated and a new basing pattern must begin...after it stops falling, that is.
If it stops at seventeen and change, it should begin a charge at the previous high, twenty-two and eighty.
So, for those much more aggressive than I, try buying a little down there in the $17 area, if anything I have said here appeals to your sense of greed and avarice. As volume picks up, buy a little more.
Lots of scenarios, I know; not a guarantee in the bunch. That's the markets for you. Just when you think you have a handle on things, up pops a new wrinkle.
What is the normal or average daily volume for ARUN? Bought 1000 shares at $19.50. I am not up on this stock but bought it based on what IBD said. Opal, can you or someone else shed more light on this ?
Opal gives you good advice.I mean no disrespect, but if you really don't know how to type ARUN into the Yahoo Finance stock quote brouser, you aren't ready to invest $20,000 in anything.But, in the spirit of kindness, here:
2,439,600 shares daily, using the I.B.D. 50 day MA.
"I am not up on this stock but bought it based on what IBD said".
O'Neil himself would caution you about making such investment decisions just on the paper's say-so.
Always look for the "buy point" before jumping in, hoping-upon hopes that you've caught it correctly. Looking at the chart, I'd say you're probably safe here, considering that you've said where you bought ARUN yesterday.
Still, I'd like to see ARUN go lower from here. Why? Look for my recent post in this thread...
Woke up with a sore knee which I hadda ice:) Old ya know:) Absolutely brilliant analysis of various scenarios Opal!!! I'm gunna stick with a short to medium term pullback(as posted) and then a return to the uptrend.OK, Opal, when your MIA, I'll call for reinforcements:) Long ISLN and RAX, huh? Gunna check em out:)