Originally Posted by
jamesey
The reason the chartologists are predicting a break out is for a few reasons. first the last downtrend in siri had a V shaped recovery at .31. The support was at .29 and the buys were piled up until .30 (where we reversed). Today we saw those buyers lining up even further to the .315 level. With support moving up and the moving averages going through a triangular convergence means a move is imminent. I will also note that on todays chart we ended with the 'Hammer' pattern. This is a typical pattern found at the end of a downtrend. Of course like many patterns you need confirmation of the move on the following day. There was a 7.3 million share trade at the close well below the trading range at .326. Retail buys high, crooks by low. I think that was the MM either covering a short or starting a long position to start tomorrow.
Another thing to note is the past two small pops we had to the .36/.38 area seemed to be shorted down until the momentum was killed (deep pockets). What this means is those stop losses will be around the .38 level (if they haven't covered already). So a move above this will end up being 3x more fierce then it would of been if we didn't have the 2 pops and pullbacks.
Like anything else, take it with a grain of salt.
GLTA!