Down it went. Closed the late Feb. gap and has retraced more than the inverse of the golden mean. Its oscillated to oversold so a bottoming candle could signal a trade to the long side. textbook trading.
Whoa, 10.99 zoom early, then gave it all back and closed at the low. Sucker rally. Stock is sitting on Mar. 24 support, but it looks a bit slippery. Better than even chance the stock will continue to answer the March rally by going lower. The top of the gap or the 50dma may provide support as the chart personality continues to develop. Trading risk/reward favors lower prices. Closing at the low today was noteworthily ugly.
The downtrend line off the March 18 and 24 bottoms reveals the pace at which the stock likes to fall. Weakness is a bit tepid just now given the residual enthusiasm of the recent rally. As enthusiasm cools the time-worn weak longs will collect their profits in the face of reluctant new buyers who are noticing lower highs and lower lows. Our desk estimates April 13 as trading equilibrium's arrival time at some support, about 9 and change. We may consider the shares at that point.
A parade of lower highs portend lower prices as the stock seeks support. The rally out of the 7's has set up lots of profit taking. The stock looks to migrate back to the gap at 9-teens. Down she goes.