correctionI am probably the only guy on the forum that is happy to see GCU get whacked lately. I have not sold a share, and do not have the funds to buy more anyway, but as a long term shareholder, I am encouraged to see the stock finally take a break in a normal correction. It has been nearly a ride nearly straight up for several months, and that is not sustainable, no matter how much value may be built into a stock. Simply put, traders get overcommitted and the supply of buyers dries up as less people are willing to continue buying a parabollic spike. The higher the run, the deeper the correction in most cases, as traders then panic and sell, stop losses are hit, shorts pile on, and buyers become wary and refrain...
Long term historical resistance for GCU stood at 70 cents, and believe that now represents support. It is not uncommon for a stock to go back and retest a breakout above long term resistance, especially considering the volatility of the overall market right now.
I was away from the net for a few days at a remote fishing village, and I was talking about this stock, and suggested to my friends they should bid around 71 cents for it. I had no idea that we would get hit so hard so quickly and that it would have hit 71 already and I know my friends will not be able to buy until tomorrow at the earliest, so I am happy for them that they can get established cheaply now.
The summer weakness will pass soon and then I think we are going to enjoy a strong fall rally. I remain very bullish on the outlook for GCU.
cheers!
COACH247
Voluntary disclosure: GCU is a paid advertiser on my website.