Hi, Semi, GGBM had a big up / big vol day last week but it has drift back a little. What is your read on this sequence? Thanks.
Hi, SemiBizz re GGBM
Started by
gti_99
, Feb 18 2007 01:12 PM
2 replies to this topic
#1
Posted 18 February 2007 - 01:12 PM
#2
Posted 18 February 2007 - 01:43 PM
http://bigcharts.mar...&mocktick=1.gif
I read it as a "sign of strength". Now to prove it can go higher GGBM must reverse the "bearish upthrust" stealth sign of weakness condition from the day following the big volume high day when the high was exceeded on lighter volume and the reversal kicked in... I'd expect a test of the low(2.74) of the big volume day on lighter volume to set up a "bullish spring" condition. That gap from 2.69 could also be tested. The idea is to prove there are no parties still interested in selling at the lows. Stock operators tend to be a paranoid bunch, so taking GGBM back to the breakout point is no surprise...
Trading Strategy (this is not advice) - buy 2.69 - 2.74 for a hold to retest the $4.25 area on another sign of strength. You can set a stop somewhere slightly underneath the 2.69 if it closes under it, even on light volume. Many times the operator is so paranoid he wants to take it all the way down to see if there are any latent sellers. And of course a break of that 2.74 on a million shares or more takes you out of the trade, period.
I read it as a "sign of strength". Now to prove it can go higher GGBM must reverse the "bearish upthrust" stealth sign of weakness condition from the day following the big volume high day when the high was exceeded on lighter volume and the reversal kicked in... I'd expect a test of the low(2.74) of the big volume day on lighter volume to set up a "bullish spring" condition. That gap from 2.69 could also be tested. The idea is to prove there are no parties still interested in selling at the lows. Stock operators tend to be a paranoid bunch, so taking GGBM back to the breakout point is no surprise...
Trading Strategy (this is not advice) - buy 2.69 - 2.74 for a hold to retest the $4.25 area on another sign of strength. You can set a stop somewhere slightly underneath the 2.69 if it closes under it, even on light volume. Many times the operator is so paranoid he wants to take it all the way down to see if there are any latent sellers. And of course a break of that 2.74 on a million shares or more takes you out of the trade, period.
Edited by SemiBizz, 18 February 2007 - 01:45 PM.
Price and Volume Forensics Specialist
Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
Volume is the only vote that matters... the ultimate sentiment poll.
http://twitter.com/VolumeDynamics http://parler.com/Volumedynamics
Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
Volume is the only vote that matters... the ultimate sentiment poll.
http://twitter.com/VolumeDynamics http://parler.com/Volumedynamics
#3
Posted 18 February 2007 - 02:32 PM
Thanks very much for the analysis.