It took a few days of sitting at RSI = 30 on the daily chart but BIOL came off that support level with a vengence today. BIOL is the biggest gainer on my board today (12.5%).
Volume is strong today too: 50% ADV 2 hours into session.
What I'm looking for next?
A sustained rally for today/tomorrow/maybe next day too where RSI 70 on 60 min chart for a considerable portion of the time. After that, retrace to support at RSI = 50 and then another rally to RSI 70, on the 60min. That will tell me the juice is back for real i.e., the correction is over.
One would think that some short covering has begun but there is significantly more to come. Even a 50% to 62% bounce here puts us back near $5.
BIOL Believers - If you got shook out in the sell-off, no shame in that. The shame would be if you didn't jump back on the horse ASAP - the BIOL bulls are back in control.
Q. Who's selling now?
A. Nobody. Not shorts. Not longs. It would be irrational to sell here.
I perused MLNX, not loving it need to spend more time with the stock to know how it trades, if the current situation is a cyclical thing, or a market shift. Q4 of last year should have been one of it's best, but it wasn't. Kinda reminds me of Cisco in the late 90's with IP telephony. No love or hate for it, without digging much deeper. Think it has further to fall short term though.