Yes, that close was bullish and I really like the chart. The stock has put in a four month base and looks ready to make a run through the 50 day. With a good next quarter the stock could run to the 200 day ($3.62 now).
The 20 day has been major resistance as the stock has trended down. If we can close the week above the 20 day and near the high of the week then that would be a positive. Obviously the higher above the 20 day we can get the better, so $9+ would be ideal.
Got pretty close to testing $8 today. Let's hope that holds and ideally it closes near the high of the week on Friday. That would create a hammer candle on the weekly chart.
Even though the stock broke through $9 and has been trending lower, RSI has not made a new low, which is a positive RSI divergence. That might be a clue that $8 will hold and the stock could start to rally soon.
Just trying to find something positive. :)
Well, don't get mad at me if the stock goes up soon. :)
I think this is a fascinating company that I would love to be a $100 stock one day, but it simply isn't acting well. The company is entering into it's revenue growth stage, yet the stock makes a new multi-month low? That is not good, and like it or not, lots of big money won't buy a stock if the chart looks bad. Last year the stock bottomed in November, which is when the next quarterly report comes out. Maybe November will be the ultimate bottom, who knows, but I'm only going to own the stock when it's going up. There are too many other stocks to chose from that are super strong.
Big losses occur when people don't use discipline and hold too long because they are afraid of missing the big move up.
If you get stopped out you can always buy back. Using stops not only allows you to limit losses, but allows you to clear your head and make a better entry the next time around. It sure beats riding a stock down 20% or more.
Once $9 broke a test of the 52 week low at $8 was a given. If $8 holds and the stock snaps back with authority then the bottom is likely in. If $8 breaks then all bets are off.
Stop losses kicking in explains the increased volume. $9 was solid support, so today is discouraging. I would be more concerned if the stock closes below $9 tomorrow, which could lead to a test of the 52 week low at $8.
If you look at the weekly chart the lowest point for the stock was in Nov/Dec of 2012. Since that time the stock has made a series of four higher lows, and if $9 holds on a weekly basis this will be the fifth higher low. Things looked pretty dicey there with the close yesterday at $9.04, so it is definitely encouraging to see a buy signal get generated today and a close at the high of the day.
If we get follow through on Monday and next week, I think the chances to buy in the single digits won't happen again.
The key levels to watch to the upside are $10.50 (200 day), $12 and $14. Once $14 breaks on a weekly basis this will become a momo stock as shorts will start to get squeezed. We'll see, but my gut says that this stock will finally start to pay off for the patient longs on this board.
No worries. Today's action is encouraging, but I want to see a close above $9.40 on good volume and follow through next week. If that happens then a run to the 200 day @ $10.50 should happen.
Yes, but unfortunately the stock reversed before the close that day and has been trapped under the downtrend line and 20 day ema ever since. It was premature on my part to call that a breakout before the close. It is what is it, and you have to reassess as a pattern develops. Now that the stock is at the apex of a descending triangle we won't have to wait long for the next direction to be determined.
It's right at the apex of a descending triangle, which is a bearish pattern, so whether it breaks down or reverses higher should happen in the next day or two. A close on decent volume above the 20 day moving average ($9.38 today) is bullish or a close below $9 is bearish...very simple.
A weekly close below $9 would be discouraging since it has been trying to build a base for several weeks. I can see it testing $8 again if support at $9 breaks.