In a downward sloped trend channel since last August, look for it to make another leg lower in the next few weeks.
It’s overbought and the chart shows a series of lower highs over the last couple of months.
In a six month trend channel, it just hit the lower rail and it also has the 50-day moving average as support.
It’s my “Option Trade of the Day”.
It has an interesting chart and is trading near a busy point that’s acting as resistance.
The stock just hit the lower rail of a trend channel and looks poised to make another move to the upside. Similar November and February lows had jumps in excess of 35%.
From the low in January and March the stock bounced $5. If it bounces $5 from last week’s low, it will reach max trade returns.
The stock looks poised for another leg higher and the stochastic indicators made a bullish crossover last night.
The last time we saw the indicators down near oversold territory and at the lower rail of the channel, the stock rallied 14% in just under a month.
It’s overbought based on the 10-day RSI and the daily stochastic indicators and they made a bearish crossover.