It's not perfect but it may be close. Let's see how it plays out now. I still expect some corrections/check backs if it heads higher, but so far it is playing out nicely.
Disregard the solid diagonal white trend line, not sure what I was trying with that one. Maybe it will be a point of resistance, maybe not.
Relevant fibs of support and resistance also shown.
Two trendlines for the bump and run are drawn (dashed lines) - I'm not quite sure which one is more accurate to be honest.
Had a decent amount of insider buying (IIRC) as well as being driven into the dirt with a low float of ~30M shares...
Still seems undervalued, but what do I know.
Final Notes:
References:
Disregard the solid diagonal white trend line, not sure what I was trying with that one. Maybe it will be a point of resistance, maybe not.
Relevant fibs of support and resistance also shown.
Two trendlines for the bump and run are drawn (dashed lines) - I'm not quite sure which one is more accurate to be honest.
Had a decent amount of insider buying (IIRC) as well as being driven into the dirt with a low float of ~30M shares...
Still seems undervalued, but what do I know.
Final Notes:
- It would be nice to hold $7; if not that, then 6.36 or 5.92. Seems pretty volatile and a potentially good candidate for active trading if you manage risk appropriately.
- RSI is turning around on 1hr and lower TF, and it looks like a possible bearish harmonic (crab?) may be on the 15 min.
- Looking for possible re-entries around $5-6 if it can retain its upward momentum.
-
References:
- thepatternsite.com/barrb.html
- Bulkowski's Encyclopedia of Chart Patterns, Chapter 14.
Comment:
-This will have to be managed carefully. If current support levels are broken then the next support levels are ~$4, with a gap ~$3.90. All seem like nice entries assuming the chart still has upward momentum, etc.
Trade active:
I think there may actually be an extended v bottom forming. I wish I could add a link to an additional chart, but review the link from Bulkowski's site below.
Per Bulkowski, the price target is the high at the start of the pattern, which, if this plays out, would put a target around $18-19+.
Prior to that, closer targets would perhaps be the gaps on the 4hr charts at ~$7 and ~$13.
thepatternsite.com/vBottomExts.html
Per Bulkowski, the price target is the high at the start of the pattern, which, if this plays out, would put a target around $18-19+.
Prior to that, closer targets would perhaps be the gaps on the 4hr charts at ~$7 and ~$13.
thepatternsite.com/vBottomExts.html
Trade active:
While this ended up very much being a good example of a failed bump and run reversal (Bulkowski's section on failures has a good example as well of this), this asset has often been a bit fun to actively trade as its moves can be quite explosive and sudden.
It's now in a downward sloping channel, and its most recent move post earnings has put us at the top of that channel, with a daily close just above the 0.236. 2 more daily closes above the .236 might confirm an eventual further move upward to the 382 at 6.35; this is relatively confluent with the 200 SMA at 6.57.
Before that can happen, I suspect we will need 3 body closes on the 4 hr timeframe above the 200SMA. We currently have part of 1. On the four hr, we also see 0.382 at 5.48; 5.43-5.48 will be our resistance in the next move should it continue upwards. This would also break the price action out of the current downward sloping channel and signal a potential change in the trend.
Until then...the larger downward trend has not yet been broken, though the shorter term smaller moves can be engaging to trade with proper risk management.
It's now in a downward sloping channel, and its most recent move post earnings has put us at the top of that channel, with a daily close just above the 0.236. 2 more daily closes above the .236 might confirm an eventual further move upward to the 382 at 6.35; this is relatively confluent with the 200 SMA at 6.57.
Before that can happen, I suspect we will need 3 body closes on the 4 hr timeframe above the 200SMA. We currently have part of 1. On the four hr, we also see 0.382 at 5.48; 5.43-5.48 will be our resistance in the next move should it continue upwards. This would also break the price action out of the current downward sloping channel and signal a potential change in the trend.
Until then...the larger downward trend has not yet been broken, though the shorter term smaller moves can be engaging to trade with proper risk management.