Here are some charts:
(1) On the hourly chart, you can clearly see a negative divergence. The TA indicator (CCI-14) was lower low, but price was higher high, this negative divergence drove the price lower.
(2) Expect the stock price to find support in 34 MA and 60 MA area, in this chart, it is around 34.6 to 34.30.
(3) The current price is at 38.2% retracement from the recent high and low, the pink area is the support of the day. But you see it broke an asymmtrical triangle to the downside at $35.50. If the price won't hold 35.25, we're talking about $34.49 as the target price, this is the hourly point of control (POC), about 90% of the trades were at that price in the past day or two. It was the previous resistence, the resistence now serves as the support.
(4) On the daily chart, the point of control (POC) is at $36.42, as you can see the price stopped right below it today. It is hard to pass that line because over 90% of the trades for the past several weeks were at that average price. Folks would be happy to sell at breakeven after waiting for a few weeks.
(5) On the 15 minutes chart, it is trading right at a critical support, the price is right above the the 60 period MA:
(6) The broke down of that asymmtrical triangle is more obvious on the 15 minutes chart. The 15 minutes chart says $34.5 - 34.7 appears next good support if $35.25 won't hold.
(7) Notice on the daily chart, the technicals are just starting to bounce, means this is just a consolidation, it could go up after the consolidation is done. On the hourly chart, the MOMO line is still sitting on the top. If the price goes up from $25.25, have to be careful in shorting, the uptrend could resume.
Quote from pkny:
thanks. On a 15 min chart it looks like I would be shorting for the pullback and I've heard a novice shouldn't really do that, and look at the support (potential) now between 33-34 (daily chart)
I'm confused..........thanks again, if you like, you can continue to guide me using this trade as an ex.
