Thanks for reading this post. For several reason it seems SAM needs to drop, we see from history that it doesn't like to leave gaps unfilled (see three thin grey rectangular shapes across the graph) and it currently has one at 366. There is also a 1.27 extension of the most recent impulse wave down from its high at 364. Using time symmetry (you can see it in the ABC correction I've outlined earlier in the year) I would say roughly 6 days after it starts to turn down would be a good time to take profits on a short position. Lastly we see a very high level of volume on a relatively average sized green candlestick which implies that a lot of selling is going on 'behind the scenes.' Today it got a price upgrade but I am still bearish into the mid 360s for aforementioned reasons, setup is invalidated only by SAM making a new high.
Comment:
I am still bearish on this stock, the 1.618 extension of the mid-April to mid-May run up clocks in at 411.53 which is almost exactly where we are at. If there is a sustained break above this level then it will be time for a re-assessment.
Comment:
Its time for a reassessment. No matter how sure you are of something there is always a double digit percentage chance you will be wrong and I was wrong here, I take that. One point I want to make is that the same analysis I used here, volume or otherwise, will be right most of the time and I will continue to use it.