Bombardier Inc. T.BBD.A

THE NATURE OF SUPPORT, RESISTANCE AND BREAKTRHOUGH

[Starsearcher80]

As stocks climb to resistance points, they often bump up against them several times before breaking through.  In the case of the Bombardier chart right now, we actually have two break points to contend with.  The first one is the 200 EMA. The second one is the break of the consolidation pattern.  It's a bit of a double-edged sword with this two key points being close together.  As the stock approaches the resistance point, you have people buying in anticipation, which of course is a good thing.

But..

As the stock breaks through these points of resistance, it is quite normal for the stocks to retrace to the lines of (previous) resistance to confirm that these resistance points now act as support.  It's why some people only buy the breakout on the touchback, as it is generally less risky of an entry point.  

So think of the previous resistance points now as levels of support.  But at this particular moment, they essentially act as magnets, pulling the stock back briefly to confirm the breakthrough "should have happened" in the first place.  And where there is usually one "magnet", we now see two magnets close together, drawing the stock back.  Totally normal.  Totally justifiable.  And as much as we want the stock to just run and run and run, the tye typical case scenario, this is totally expected.

 More times than not, these touchbacks provide the confirmation of support, at which point the stock begins a process of "breaking free" of the pull back to these support lines.  On some occasions, more rare, the support does not hold, and the points of resistance are re-established for further consolodation to take place.  In this light, the break and run is not a given, or at least not a given at this time.

So we'll see.  I reamin with complete confidence that the run will resume, on substance.  I'll take that any day to a run that is just vapour.  Imho, the process is completely on track, and close to the final stages of consolidation.  Previous resistance appears to be acting as support.  All good to my eyes.

[PabloLafortune]

Is somebody(s) backstopping the stock by BTFD on down days? Its unusual not to have much volume on such a down day and yet bounced back and hold.

[Starsearcher80]

Habitually, I pay a lot of attention to the trades going through.  I want to know the participants, are they friend or foe, and at those times where there looks to be manipulation present, understand the game. You have to take the position that those of us in retail are at the bottom of the foodchain of knowledge.  Like it or not, there are those higher up the foodchain, who aren't

[glory7]

Between you and Form don't know who's more full of $ hit?

[Form001]

I like your post.

[Form001]

Miss, Star, I like your post. It's important that the  bullboard is for long, not daytraders. If they want to trade, no problem, but the bullboard is the the place.  

[Starsearcher80]

Form, you're sounding either not too bright, or one of those persons who is just annoying.  Take your pick. Neither is pretty. Now, to put you SQUARELY in your place and school you silly, consider the following: You say you're here for the longs, not the traders?  I'm hitting the B.S. button. Let's just look at your posts JUST in the past 24 hours. "Futures up

[Form001]

Star, don't take too much times and a lot of lines to reply. In 2 lines, habitually is enough. 

[clubhouse19]

way too polite IMO. Like trying to convince a Trump election denier or comspiracy theorist!

[PabloLafortune]

Star, in all honesty, this stock trading is beyond my pay grade and you know what they say about old dogs.. Like I said, I have noticed that there appears to be a pattern of beating the stock down early in the trading session and then rallying after the initial 90. What I'm keen on at the moment is long term debt buyback if at all possible. Yesterday CVE bought back $2.2B USD of LTD via a

[Starsearcher80]

Great food for thought Pablo.  I do understand and appreciate what you're saying.I'll respond in segments: 1) The Fed:  The Fed has gone on record suggesting they will do whatever is necessary to beat down inflation.  While the Fed, I believe, is a well meaning agency, they do have a track record of getting it wrong.  Look no further than them saying inflation was only

[Starsearcher80]

Sorry Pablo, I forgot to respond to the trading that is going on.  As I said before, Bombardier is under heavy accumulation.  Today is another good example, with House 1 taking over 70,000 shares in the open market. House Positions for C:BBD.B from 20220914 to 20220914 House Bought $Val Ave Sold $Val Ave

[PabloLafortune]

star, thank you for your sound practical advice. In a way trading Bombardier is analogous to trading bonds. The bond traders feel that if the Fed overreaches, they'll put the economy in a serious recession and will have to reverse course in which case bond prices will rise. Or they take the step by step approach it's raising less than expected and bond prices will rise. Either way it's

[lb1temporary]

Thanks to you two, very interesting. If I can add my salt: a) What you're saying about the buybacks is true; it 's an excellent timing, I expect that the rates rise will short live. The level of endebtness of individuals and corporations excited by the historic low rate level will be unsustanable with higher interest rates for a long period. it will be contraproductive to see governments

[PabloLafortune]

Temp, can you imagine a consumer where 2/3 of his/her net income goes towards interest payments? That's Bombardier in a nutshell. So you can imagine the torque on the share price of any sort of debt reduction...and also why most institutions won't touch it at the moment.