Key points :
- Pullback in Traders Action Zone
- Volume increasing
- Buyers threatening downtrend ("inverted hammer")
For more information about the Traders Action Zone, please take a look at my previous analysis ("Related ideas").
The correction yesterday provided us with quite some opportunities. Just as on the idea I linked, we can assume that this stock is pretty solid.
By comparing yesterday's overall market correction (near -7% on the Dow Jones) with the price action on individual stocks we find out which stocks are "strong" and which ones are "weak".
The stock pulled back into the TAZ and formed an "inverted hammer". In other words, buyers are threatening sellers. The stock gapped down, got bought up and came back down before consolidating (on high ) around the opening point (hourly chart).
Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer.
***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***