RE:RE:RE:RE:RE:City Trader Article
Not that I am an expert in technical analysis but I think what Rollie might have been referring to is that since the ascending gap to $2.32 Sept 11/13 IAE has bounced off $2.35-$2.37 about 6 times. So in theory, there is a fair number of shares that have gravitated to "strong" hands unwilling to sell below that level unless there is some compelling event(s) to do so, such as perhaps a significant drop in the price of crude, declining production, the current equity market correction becoming much more severe, and so on. If the price were to drop below that support level in the mid $2.30s it could trigger a wave of selling that could see risk back down to around $2 but I wouldn't bet the farm on that happening. I have been, and will continue to trade somewhere in the range between the mid $2.30s to the $2.70s in my short term account, while keeping some powder dry, as I mentioned before, should it in the unlikely event drop closer to $2.
On the topic of technical analysis and a bit off topic from IAE, has any of the other techies on this board noticed the potential outside reversal pattern that seems to be developing today on the S&P500? If the market can close today above yesterday's high that might signal the end of the current correction. Any thoughts?