Today was a bad call from yesterday’s game plan. I thought we would have a hard time getting over the upper channel resistance line and the 200DMA on the weekly. I figured we would move back into the TR. To my surprise we moved right through everything with relative ease and closed above it all. It was a pleasant surprise.
|The shooting star from the previous close was invalidated, so I'm not expecting the drop I thought possible. Also because today closed above TR resistance.|
It looks like Phase D of accumulation. It had one SOS to break it over the first trading range resistance in the $34.60 range. Last week ended in a nice hammer, which may be the beginning of another SOS to break it over final resistance in the $37.40 range. If so, I expect a retest of the $37.40 range where I would think about taking a position. Or, if it pulls back on low volume to retest the $34.60 range, that could be a good place to start a position as well.
I think this is in Phase D of accumulation, about to break out into Phase E and start an up trend. Look for a pullback to the $9.87 range to start a position, or if it moves over $10.08 on a closing basis, wait for a retest of that $10.08 to start a position.
Today was a bad call from yesterday’s game plan. I thought we would get some wholesale participation today, but to no avail. So, my call was wrong, but it was still a constructive day.Weekly Scorecard
|I raised my target up a little to $12.80. The spring was sprung.|
Today was a good call from yesterday’s game plan. I expected an increase in volume with gains, but not overly significant as there is still supply left to be absorbed. That is pretty much what happened. Today’s volume was slightly higher than yesterday’s and ended with a 3.41% gain.
|I was watching for a possible spring. I said if the price reclaimed $10.15 and moved back into range it would likely be a spring and I'd take the trade|
I’m watching a possible spring being formed on the weekly chart in Phase C of accumulation. If it reclaims the trading range above $10.15 and holds, then it is probably a spring.