Firstly, I am not even close to the knowledge that Cabbie has of Volume analysis but understand it reasonably well.
Since Cabbie mentioned that FLT could become a remarkable case in Reversal Analysis, please allow me to share a few extra thoughts with you.
Some well established shares have what I term a good 'DNA' i.e. when you look at their long term behavior, you can discern patterns which continue to be repeated. An example of this can be see with BHP when it was on the way down following the debacle of the Marius Klopper's era.
In FLT's case please refer to the three charts below: (please click on them to expand)
Chart 1 -
You cannot see this clearly because of the copy/paste limitations but take it as gospel that the stock has retraced to just below the 76.4% level in the past and found support there. You can see Support being built in that Zone.
Chart 2-:
Chart 2 shows another 'confirmation' that the price is being supported and this on the Monthly and via the Volume.
The Big Bar is an Exhaustion Bar and please note the Volume. Not that great, meaning that there was Supply (people wanting to Sell) but there were no Buyers and the price just collapsed. That's the reason why the price was able to fall down so easily and on such a Low Volume.
The next Bar is a 'Tell Signal' as it is a Doji and a fairly large one. This, as you guys know, means indecision and in this case the battle was between Sellers panicking by a falling market (Corona effect on Travel) and the Buyers who saw value.
This Value aspect tends to appear when a well established, well run and profitable stock has a serious pullback to a value zone (61.8% to 76.4%). They're long term investors looking for 'Value'. I'm referring to Institutional Investors, the guys that actually move a stock, as you know.
The very last Bar on the chart (Monthly) is very significant as it can produce a fabulous Bullish signal (in conjunction with the other bars to the Left), if the price does CLOSE Above the $14-, which is the High of the Doji. This is on the Monthly.
Chart 3 - follows:
When timing an entry, it is important (as most of you know, but please allow me to repeat this for the benefit of those trying to learn), to start with the long term picture and move down to the Daily.
There's a Consolidation/Accumulation is place where we even find a Spring of a Test (right Cabbie?).
The overall picture as it unfolds looks quite promising and if the restrictions are lifted (please remember that FLT is a Global company and many places like China, Europe and the US are reopening), this should 'take off' .
I will not go into the Call Options trade as a poster was quite insulting and it's a pity as I'm only trying to be helpful. A bit of humor, especially in times like this should not hurt anyone either. PB knows this as do most others, I'm sure.
(20min delay)