Yesterday we had huge volume exhaustion followed by a hammer today (still a hammer with dark body): not too bad odds IF price shows some strength ABOVE today's high of 7.33 that it will work its way up to $8-9.50, IMO. (I might place a buy stop limit order, stop 7.34, limit 7.38)
We also have divergence forming on the PPO (stockcharts.com) which gives even better odds for a follow through to the upside, that is, IF the price starts moving up.
I do indeed think a short-term bottom is in, but whether it is a long-term bottom will need more evidence later.
Stop loss to be placed below hammer.
(Disclaimer: price is way below moving averages; it could be way too soon to be jumping in--definitely bottom-fishing.)
We also have divergence forming on the PPO (stockcharts.com) which gives even better odds for a follow through to the upside, that is, IF the price starts moving up.
I do indeed think a short-term bottom is in, but whether it is a long-term bottom will need more evidence later.
Stop loss to be placed below hammer.
(Disclaimer: price is way below moving averages; it could be way too soon to be jumping in--definitely bottom-fishing.)
