Mid-week update on SOXL and observation that a bounce was about to happen, was expected with these criteria for something worth a look at:
"The current gap range needs to be closed clearer and an immediate resistance (above yesterday's high, green horizontal line) needs to be cleared. Then a break into the next gap range above the next resistance (thicker green line) is essential."
So, the weekly chart is now indicative of a likely bounce given the bullish candlesticks Piercing Pattern. Technical indicators do not quite tell it... yet.
The daily chart did almost what it needed to do. 1. It closed the late August gap (down); 2. It cleared the immediate resistance (green line); and 3. it broke into the next upper gap range by gapping over the next (thicker green line) resistance. Technical indicators crossed over or are about to cross over. Bullish, as all outlined criteria is accomplished.
Now, it probably come back to test a resistance-turned-support. Hint here is that despite the bullishness, it still failed to clear out of the current gap zone. So, the resistance there is strong and perhaps another day it will break out. So, expecting a shallow retrace, and then take off.
Meanwhile, a possible higher low on the weekly chart just might have been registered.
Be nimble, be quick... be like Jack!
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Totally washed out btw... have to rehash this another day
I'm not sure about my predictive ability, but a week may be coming where it just keeps going down and down - then suddenly reverses. You should try and buy before the reversal (though you will miss a few percentage points)
The reason is that by the time it reverses, it may be just too high or high enough that it cuts into your profit.
For instance: 2018 stock market correction - ended with a +5.8% day (which translates to about 17% on this security!!) 2020 stock market crash - ended with a +7% day (~21%!!!) 2009 "crash" - ended with a +7% day
If you had foolishly bought two days before the bear-ending rally: 2018 you lose about 3% (9%) 2020 you lose about 4% (12%) 2009 you lose about 2% (6%)
But those are just my thoughts :)
Auguraltrader
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Hi @roxythetradermage, thanks for sharing your thoughts. I agree that at some point it would do a strong reversal, as it always does in such off the cliff type of drops. Am looking out for it, just do not see it even stalling for a bit yet... usually we have a major blowout spike before the reversal or a stall and flip. Still waiting for it. Also, in these kind of everything goes down kind of scenario, I track the major indexes mainly and set some alert lines on those I am not tracking as close.
IF opportunity and time permits, I would do my best to post if anything develops, as it develops. ;) have a great weekend and thanks again!
elenaec
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how high do you appreciate / evaluate /predict it can get , is it the lowest it can get ??? thank you !!!
Auguraltrader
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Good day @elenaec, After today's start, I kinda get the sense that the coin keeps flipping, and today just might be yet another flip. Previously put the expectations at a bounce about 12. As for the longer term evaluation... I think it is about 32-34. The important thing about this projection is WHEN. Definitely, not around this period as I think there are many gap up and gap down, ie. increased volatility muddies the water.
I'm not sure about my predictive ability, but a week may be coming where it just keeps going down and down - then suddenly reverses. You should try and buy before the reversal (though you will miss a few percentage points)
The reason is that by the time it reverses, it may be just too high or high enough that it cuts into your profit.
For instance:
2018 stock market correction - ended with a +5.8% day (which translates to about 17% on this security!!)
2020 stock market crash - ended with a +7% day (~21%!!!)
2009 "crash" - ended with a +7% day
If you had foolishly bought two days before the bear-ending rally:
2018 you lose about 3% (9%)
2020 you lose about 4% (12%)
2009 you lose about 2% (6%)
But those are just my thoughts :)