Subject re: jp morgan jumped on.... Posted 04/02/05 01:22 - 242 reads Posted by jebigabre IP 129.78.xxx.xxx Post #501822 - in reply to msg. #501793 - splitview
Should have a dead cat bounce, 5-10% - don't buy it.
It will come down below $2 mark where it took off for the dead cat bounce. My prediction: $1.70-1.80, being the old resistance/support before it moved toward and past the $2 mark.
Buy then the last panic selling - it will be charecterized by very big volume as the last nervous holders are shaken off. This should happen around $1.70-1.80 like I said and the volume will be much heavier than two days ago when it crashed.
This should all take only a few months to complete. Should be all upside from then.
Have a look at the CXP share price around Nov and Jan 2003. QBE was a similar story around the Sept 11 incident. AMP similar but not quite the same. Many others as well....
This is an easy trade and typical price/volume action scenario for a company with good fundamentals that runs into s/t problems. For FLT on the other hand this scenario doesn't quite work as its l/t fundamentals have deteriorated.
