I have a general negative fundamental outlook. I believe Andrew Left's concerns are carry weight. I'm timing my entry technically in a fashion that makes sense. Psychologically, the market has been aware of both sides of the narrative. The post-IPO hype and the consecutive extreme run-up. And Mr. Left's negative narrative and the consecutive extreme drop. Now the question is which narrative will win in the minds of the market participants. The stock has been ranging for awhile. The level I see as critical is where I've placed my stop. It's a level if breached would indicate for me that I'm "wrong" and the market does not agree with my (and Mr. Left's narrative). That level is in the general area of 33% retracement of the big drop and a recent swing high. My target is $10 but I'm placing my exit just a bit above because $10 is a psychological level and we are likely to see some support there. The institutional holdings of this stock are low. There are a lot of retail bagholders. With enough pain they will capitulate.
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The break of strong support in low $18s is critical for further deterioration.
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Still ranging. Resistance tested 3 times. The range will eventually break. The million dollar question is which way of course :)
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We're seeing more volume on down days. Someone is selling.
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Breaking critical support.
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on increasing volume.
Trade closed: target reached