Long $BSMX Day 10 Analysis

Today was a good call from yesterday’s game plan. Today started out rough, but ended with some strong moves up and away from the previous trading range which was tested Friday.

micro analysis

 

Here is today on the 15 minute chart. We started a little shaky as we re-entered the previous trading range. But, as you can see, it was all on very low volume. It seemed like the first part of the day was some low volume testing to see if there was anymore fear left after Friday’s markdown.

Apparently the test passed because around 12:30 volume came in and it moved the price up rapidly. That big green volume bar was an anomaly. That was big effort without much result. I looked at the 0ne minute chart to see what happened there. It looked like there was some big selling, but it got absorbed which created big volume with little result. That’s a strong sign.

macro analysis

 

Here is today in the context of the last five days. Today ended with a lower wick and back above the previous upper orange channel line.

Look at today’s volume versus the previous bar. Today was slightly more, but the result of the effort was much smaller than the previous candle. Once again, going back to the micro analysis, fear from the unexpected move down Friday was being absorbed. Again, this is a good sign.

global analysis

 

Here is the weekly. We are just starting the week and it already moved past the 200DMA and the previous upper channel line. Granted, it didn’t have to go too far to do it.

tomorrow’s game plan

Today worked well. It seemed like another low volume test in the morning that stayed low and then moved quickly higher into the close on greatly increasing volume.

I expect tomorrow to be less volume than today, but a move up. If MM’s have filled their inventory, then their accumulation campaign is now over. from here there should be ups and down mostly driven by retail. The MM’s will mark prices, but probably not participate much until it gets to the next area of congestion, which I targeted around $15.00.

 

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