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Move down from 7c to 4c, has found resistance at 5.2c and is...

  1. 672 Posts.
    Move down from 7c to 4c, has found resistance at 5.2c and is VERY LIKELY to test 4c.

    A) It may base out here for a while and continue ranging (4c-5.2c range), so a good entry would be around 4c.
    B) However, this may form a bear flag/consolidation, getting ready to break to the downside.
    If this happens, the next support levels for a possible bounce where you could buy would be 3.5c and 3c.

    Conclusion:
    Just up to you to decide how urgent (before QTR report?) is it for you to accumulate more and where you think it'll go based on your report findings.

    If I definitely wanted to accumulate more, then I'd ration my spare dollars and buy some at each of the three levels (assuming it reaches all three!), and be happy with a decent average price, knowing the fundamentals are solid.
    If it bounces and rallies early before 3c is reached, well, it's not that bad being long is it? =P

    Also, in general, as average volume dips, I like to look for the volume spikes to get clues of institutional buying/reversal, and time my entry, whether it's at a level or not.

    GL!

    SMAw.JPG
 
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