Bullet Point – Technical Levels Broken
Wow… what a morning. I go into a meeting and come out to find that the caution flags I said cause me worry are coming into poly. The technicals have broken, and unless this equity sees a recovery today, we are in a new downtrend. Volume is high on this move, so it is quite real. The 50 day EMA sits at $2.66, and that could well be tested. The big question is whether we go below. $2.60 is the next strong support.
If I was to make a call now it would be that the bottom will be $2.60 if we break below $2.67. That gives us two bottoms to consider. If you played this, congratulations! Personally I would not worry about re-entry until the equity bottoms out and confirms that bottom with lower volume and an uptick. Stay Tuned!
Spencer, if this equity closes today say 2.75 or below would you consider a continued down trend this week? Thanks
Albert…
The short answer is yes. I do not expect it to be long lived, but if this is going to retrace, now is the time