Summary
Yesterday’s close was looking sketchy and put this trade into a do-or-die situation. Today, it did and I’m back up 4.02%. I was looking for, at least, a close back above the 50-day MA. Not only did I get that, but also a close back over the 20-day MA, over the contraction channel resistance and back above the base. The volume was average, which sounds just average, but the decline over the past three days was on little volume. Therefore, average on this up move is pretty relatively good.
Tomorrow I’d like to see follow through, at least enough to prove that it has actually broken out of that consolidation channel. The turn is just overhead, where it has already failed several times. However, each failure has had less of a drawdown. I’m not going to get overly optimistic about a breakout in a bear market, but today’s recovery is reassuring, even if it is only for today.
