Morning TALots of numbers to look at for support levels.
With the bounce off of .91/.92, that becomes a support line.
The next line is .87, then .75, .67 and then .44 now.
What happens here is that people buy off bounces and then find the stock fails to break resistance lines and then get frustrated.
The best way to play a stock when the momentum is down is to look at support lines and on bounces take half positions and if the resistance lines hold, then sell off the position but if it breaks through the resistance, add the second half.
Works great to preserve profits and reduce losses.
Yesterday was a decent enough day to get a couple of trades in, but the trader would have put himself in a cash position at the end of the day or ready to sell at the open on any sign of weakness.
On a side note, the weekly shows us that the direction is definitely down on all indicators and we are looking at those millions of cheap shares coming onto the market in 2 days....so basically buyer beware.
Happy Trading all,
Mediascan