Gap up Monday Morning,
A test of Resistance $2.15
A bounce off and back down to test Support $2.00
Support fails and signals continued down trend
Downtrend also fails and traps those who short at break of support.
Price heads long @ $1.75 Start of long term uptrend Monthly Chart time frame Entry on the D1 chart.
BBD.B - Neutral bullish here. Triangle pattern upside being testing while breaking moderate resistance. RSI looks healthy and room to run. Gap overhead. Would like to see some more volume come in however I find it bullish at the moment while mindful of possible false breakout.
A good example of a situation where MFI takes precedence over a simple RSI. RSI shows positive divergence while MFI showing negative money flow.
Looking for a short term bounce but I'd stay away from it long term as they do have considerable debt.
Over the last 3 years, Bombardier Relative Strength (14) has hit a peak of at least 70 **AFTER** hitting a low of 31 or lower. This chart shows roughly the relationship between share price & RSI as well as the "behavior" of these technical tools through the last 7 times this scenario has occurred.
Most would be looking to short here due to the breakdown and apparent short term consolidation happening under the critical price line.
However parabolic move down plus RSI extremely overextended tells me were in for a possible sharp incline. risky and volatile so relatively tight stops here.