RE:Almost 4mil volume! $$$ Anyone up for a bit of theory testing or a test of predictions? It looked to me like a failed short attempt today. The rally after the 12% or so opening drop could have been a squeeze. Some technical analysis and intraday analyses I use suggested that.
While there is growing interest to retest $1.00, not at all unusual for rallies to retest before breaking out, this short failure might be a warning that this is not the time to take on a large short position. Stop loss at or near $1.10-1.15 for traders appeared in one of many analyses today. That would be a short trigger. A break out would intimidate shorts and we may not retest $1.00 for a while. A buy point could be forming at or just above $1.25. Tomorrow seems to be one of the most critical technical days that could set the trend for a while, so that's why I'm looking at this now.
There are many reasons for this desire by large volume trades and/or investors to want to retest lower, the most obvious one being that they missed out will force the retest to get back it at the price they want. Longer term, that's usually good, just look beyond a drop, if it happens at all.
Yeah, I know. It can go up or it can go down so what's the point? Simple. For traders: If it goes down, know why and where to stop loss and where to get in. If it goes up, know why and the next buy point could be set. For long term investors, I suppose it might not matter but even then it's important to test theories so you don't decide blindly.