There seems to be have been much discussion here today about CNJ & BAR relationship , and with the CR have been announced it is interesting to compare the two stocks (which have a relationship, therefore I don't see this as cross referencing).
BAR is in the midst of a technically bearish selldown. Volume isn't extreme, but bar lengths are longer than should be expected for the relativity of price/volume, and more worryingly the daily closes have been at the bottom of the bars last 3 trading days.
With light resistance below, at this stage it doesn't look good to me .
CNJ had an interesting day. Didn't gap down which is good, and then had a high volume sell off, but (most importantly) the daily selling was absorbed. This is very bullish. Despite the bad news, the bar length was not long, and the price closed on the upper end of the days price bar. That is classic absorption, signalling that buyers see todays price as a bargain.
The price bar also tested the resistance of CNJ trend line which adds to the bullishness.
It will be interesting to monitor price parity of the two stocks from now on.
BAR Price at posting:
5.1¢ Sentiment: None Disclosure: Not Held
