As I mentioned, ESI would probably not be able to regain its 50-day average and would once again re-test the 200-day.
Now it has failed the 200-day again on increasing volume.
The 'buying signal' on 5/11 turned out to be nothing more than an oversold bounce.
It's do or die time for ESI now. It closed under 90 which should be very concerning for the longs since it provided recent support. If it can't get back above there tomorrow, then 80 is coming soon, and it probably won't stop there.
ESI is a defensive stock and the new 'bull market' is still very much alive. We're consolidating nicely for the next leg up, in which ESI will likely not participate.
I stand by my prediction that ESI will see 80 before 130.
Those who think TA is useless, or those who choose to be 'investors' and watch their profits vanish, good luck to you.
Market is breaking out just as I expected based on useless technical analysis.
Oh, but wait, poor ESI is not participating, -1.5% in the last 3 trading sessions compared to +5.5% for the S&P.
GOOG, AMZN, AAPL, BIDU, CME ... great stocks whose useless TA showed a constructive consolidation pattern in May followed by a breakout of that pattern on Friday, as opposed to ESI, stuck in a 4 month downtrend.
The S&P is going to 1,100 by the end of July and ESI will probably lose another 15%. Money follows the momentum.
Some more useless TA: the high on Friday was at the 200-day MA. One more failure to get above the 200-day and I will short. When it gets under 90 I will short more. This is easy money here.