OzStinger: you could be right....an outside bet but possible ...it's a 20c gap up
Thats the chance you take
The thing to do would have been to close out any position the moment it breached the low of the gap down day...
That is a breakaway gap and can, but not always, signify a trend change.
A gap down day there never reverses on the next bar...unless it is an exhaustion gap at the end of a rally or down move....
That gap opposed the preceeding trend and was a high volume event....When you see that you have to cut your losses ..you will always be able to buy your stock back cheaper....
The trouble is people don't sell on that day ...they wait and hope...they see it go lower and lower then sell when the smart money are buying....
A stock never rebounds without testing support
or just above it even if you sold today at 42.5
at some point MEO will test that price before moving up.
The worse thing people can do is sell a stock at a low and go away disheartened....
Cut your losses quickly, get your money out and watch...You may sell at a low but if you are diligent you can re enter on the right side of the market and recoup your losses....
MEO Price at posting:
43.0¢ Sentiment: None Disclosure: Held
