As I posted before the BLY chart is following the DJ direction with a higher speed. For a couple of weeks DJ has dropped ~7% from its maximum, BLY has dropped by ~20% for the same time.
There are number of reasons that this is not a very good time to buy the stock because
- The chart is going to break a current support level of 33.5c and the next support level should be at ~31c
- Recent stock down movement were with an increased volume
You mentioned that the stock is cheap and it is time to buy. My simple philosophy is that today it is cheap tomorrow will be cheaper.
In the current market conditions without receiving a company announcement after breaking the next support level of 31c there is a possibility that the stock may go lower to the next very strong support level of 27c and this is almost the same ~20% drop in price as it has been for the past fortnight.
irynka
BLY Price at posting:
$3.35 Sentiment: None Disclosure: Not Held
