Looking at today's chart, it was such a long sell candle! Looking at this, stochastics are still pretty ok, with MACD and RSIstill at the high side. The 20MA and 50MA are going to touch soon, which I stated before, it should signal a huge breakout. Ok, now why did the heavy selldown came? As far as I can assume, china stocks have been running for a few days, and it was like telling the whole world that it is going to run up like no man's land! But that's the problem, while the big players have pushed the price to a significant high, retail investors may have the thought thinking that this is a time and chance to get in! But as I have stated in the morning, see the buying and selling volume. The selling volume has been high as compared to the small buyups! Now at this point, the small time buyers will be thinking, the stock has been plunging so much since the opening, what will be the next move of the big players? Today's closing is at $1.54, with the highest at $1.75.
My feel is that tomorrow the counter may touch its 200MA ($1.45-$1.46), and the more it drops, the more the small players will be scared! Probably these players will start to sell their holdings and this is the time where the big players come in. Absorb the stock at low prices again and push the price all high again! Next, shortists may see this as an opportunity to short but I got a feeling that big buyers will catch both these small fishes.
If the price did fall below $1.50 and really hit $1.45, I may go in long again, as I feel that this counter can still hit its high of $1.75 or higher!
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