Looking at the hard right edge it looks like another jumping on point, but I may be the greater fool…I post the weekly and daily chart below. Once it fills a gap at $5 it can go to $6.50 without much resistance…who knows before this bear market bounce is over it may just go to $8 where it either tests a gap in the daily chart or fills it…
WEEKLY CHART- pulling back this week- does the trend have further to go or is it topping out? Price targets at 5 to 6.5…
DAILY CHART… Sorry for the large and busy chart- but this is what I got used to looking at…Overbought and pulling back…Oscillators are resetting but the big question is the trend?
Disclaimer: I am long BRCD…
Hello Eric,
ReplyDeleteAccording to the indicators I use and as of TODAY April 16th, the weekly trend is healthy. More precisely, the weekly and daily MACD are neutral as well as the Force index 13 days and 2 days: they are following prices. There is no weakness or divergence.
However, on the short term, the A.Elder envelops and Elder Ray are telling me that it is overbought. Your indicators confirms this fact as well. Moreover, volumes are larger than usual on the way down as well on the way up: in such a case, I’m cautious.
This stock could go higher, reaching the last top while the Force index could draw a divergence. I see that you don’t use this indicator but it is useful for measuring the volumes: it is available in stockcharts.com.
Therefore, if you are bullish on this stock, I would wait for a pullback on the averages, the sweet zone as A.E. calls it: EMA 24 days and 13 days. Then, before jumping, I would check the indicators again and … the earnings release date.
Eric,
ReplyDeleteIt does look like BRCD is testing the break out at around 4. However, the overall market is ST/OB, so if it was me, I'd wait until next week and see if we correct. However, there's a lot of stocks lately that are forming 1,2,3 Tops, so BRCD might lift a bit. All that volume in the last couple of days makes me think the buyers are in, though, so I'd pass on the trade.
Hi Didier and Grant et al,
ReplyDeleteI thought I would have a bit of fun and post this trading idea...Since I have not posted any Spike Gallery Picks (is that what you call the Spike Group Observers?)I have been too busy with my MBA classes, work (at BRCD) and 20 month old son.
If I was doing quick trading I would have been in and out for a quick 10% and called it a day...I am trying to pick off the longer trend without it falling back on me too much...Like it did earlier this week as I slept in and did not respond to my pager alerts on Monday.
Didier thanks for the tip on Force Index with StockCharts. As you see from the Daily chart prices pulled back and penetrated the 13 EMA (as you suggest)- that was the buy signal. I am going to start using Stockfinder but have not found the time to learn how to use it yet. Let's see what happens and how it plays out....
I wish we could have a forum were serious folks like spike group members and observers could post more ideas and trades as they are setting up during the week. Not everything sets up over a weekend to fit the spike group format. The spike picks are great, but it would be great to have a place to share and question for both short term and longer term positions. The monthly charts are looking very interesting!
Good Trading,
Eric