Good Morning All,
New week. Last day of the month. And September 1 is tomorrow.
Does it get any more exciting than this!
Because I have nothing constructive to contribute,
I'll leave it to you guys to add all your amazing knowledge to
this last week of summer thread.
Have a wonderful week,
Julie
On the "just charts to look at" thread, Relmor posted a chart with the beginning of a Pennant or Flag formation. I posted the question " Is it bullish or bearish ? "....
The answer is: none, yet. Most likely the stock will consolidate for a while, perhaps drifting lower BUT, once it finalizes that consolidation and breaks the Flag pattern, it will continue its original trend, which was up (the pole continuation)... Basically the formation is bullish BUT remember, the price may drift lower before it breaksout off the consolidation period.
Once it breaks the formation the target price for the continuation is: $1.07 (Price last seen towards the end of September 2008 but also the 161% Fibonacci extension).
BTW: I am not trading SIRI these days. SIRI was an exception for a while for me since I do not trade penny stocks.
Last edited by Siriusowner; 08-31-2009 at 09:51 AM.
Thanks Julie.
I am seeing a push down on the charts to .63 Does anyone have a better view? I am not the best chart reader, so I welcome anyone's expertise to shoot me down.
Last edited by Siriustunes; 08-31-2009 at 09:54 AM.
Well, how did you get to that conclusion ? 0.63 ?Originally Posted by Siriustunes
There's the Fib levels, they may offer some support, but other than that there's nothing stopping the price to drop like a falling knife to 0.32 BUT if the price consolidates then you have a flag formation, if the price breaksout, it will breakout up as the flag was formed as a bullish flag... and that consolidation will offer a new support level.
The flag may take up to a month to 2 months to form. But once it finishes the price will break up. There's a similar formation between Feb and April of this year, the stock was trading at .10 but then it shoot up to about 0.32-0.35 (the pole) and it consolidated for a while (about a month, the flag) in that area and broke up to 0.45-0.50 in mid April... then the price came back down but it never broke support (the 0.32-0.35 area) and shoot up again to the 0.45-0.50 area but that area became resistance and the stock was unable to break it so it came down again to support (0.32-0.35) and then steadly began climbing again until it shoot up to a new level (0.65-0.70) and formed a pole again....
I'd say, this 0.65-0.70 level is a safe level to buy BUT again, remeber, the pps could drop like a falling knife if the fundamentals don't improve.
Last edited by Siriusowner; 08-31-2009 at 10:59 AM.
Hence why we are in day 7 of the down move. As you see today.
Id say the 10 day is hugging support right now. Looks semi-strong support right now. Could get hairy. I dont think .65 is in doubt today. SHould hold above that. Nice starting point for a new up move. Good .65 base there.
Of course we could be flat for a bit too, maybe bouncing between .73 and .65 all week. Then a challenge on the .80 cent line, or we challenge the gap. Your right, no direction yet.
Last edited by relmor2003; 08-31-2009 at 10:11 AM.
Look at a picture of a flag, what is its shape ? a pole and then the flag, which is basically a piece of cloth with the shape of a rectangle, but is the rectangle straight and horizontal ?
Even with the price going down, it is consolidating and forming a flag.... unless of course the clown the company has as a CEO comes out and screws it up.
No direction only means one thing: consolidation.
I found a flag formation in investopedia.com
http://www.investopedia.com/terms/f/flag.asp
Last edited by Siriusowner; 08-31-2009 at 10:34 AM.
Look at SIRI's 3 month daily chart... damn, that is a bullish flag forming... I may even consider loading up @ 0.65... I'll wait to see if that support is broken....Next large move will probably take the pps to the $1.07 that I mentioned above.
Last edited by Siriusowner; 08-31-2009 at 11:00 AM.
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