New TA/Charting, page-6491

Hi all. Apologies for the busy chart below, but lots of squiggles, arrows and some comments for infotainment purposes. First a daily chart, where Thursday and Friday produced two ugly high volume, low closing down bars, and you don't have to be a chart whisperer to see that supply dominated demand. However price is still above the (flattening) 50EMA, a rising 200 day average and has not yet put in a lower low or lower high, so it's a bit early to start sizing up a coffin for the longer term up trend.

So this week will be about looking out for signs of strength that might indicate a turn around, and already there is a developing bullish hidden divergence that suggests there could be some momentum to come in behind a bounce or attempt to move back up. Ideally I'd like to see price action not fall too far below the $1.515 bottom edge of the volume shelf before a bounce or it may find a bit of hard work getting back up through it.

I read @rick64 's post explaining where he took profit and then his bottom picking adventures afterwards and found it really interesting we ended up with almost the same initial exit price but through totally different methods. I haven't got the trading cahones to front-run a bottom-picking entry - I like to have some sort of confirmation but here's what I did anyway. (If you're not interested go straight to the chart!). I'm one of these crazies that likes to scale in and scale out of a position and I took half off Friday 5th at $1.925 to protect some profit before getting completely stopped out on Thursday 11th at $1.83. I have about 30c from where we are now to get back in and be back where I was or better. I had no idea what would happen on Thursday but drew a bearish divergence on the Wednesday 3rd and noticed price struggling a bit with some supply coming in above $1.92 the day after and the Friday. I reasoned that worst case I'd be buying back that half at $2-ish and best case I could buy back in at a lower price.

But with my 20/20 hindsight goggles on there was probably a much more obvious initial take profit level at about $1,98-$199 to plant a partial sell order. We could all see the $2 level looming ahead, but I didn't pay much attention to it. But price had already made a significant move up, riding the top bollinger band on it's way - but grinding it's way through some obvious supply with some bullish absorption type action. There was a better than normal chance that if demand backed off a bit, there would be some profit taking going on at the $2 level that could slap price down a bit. Obviously better traders than me saw this before it happened, not afterwards like me! Oh well, another thing to learn- it never stops!

Here's the daily:



Also, about a week and a half ago I commented on my chart that there was a "toothpick" volume shelf at about $1.69 to $1.71 level that some might see as a good spot to front-run a bounce. Well looking at the daily chart it seems that this skinny volume shelf didn't have the muscle to bounce the price back up and it was ignored. Or was it?

So just for those who like a bit of charting geekiness for amusement, here's 15 minute intra-day chart I did that night while I was checking it out- so where it says "today", it means last Thursday. Looks like there in fact were a few people who thought it was a good entry point, but in the end they were overwhelmed by the selling.