CHTP Daily Chart ~ Huge Two Day Drop Ok, I haven
Post# of 2561
Posted On: 01/04/2014 11:07:28 PM
CHTP Daily Chart ~ Huge Two Day Drop
Ok, I haven't been in CHTP, but I know a few who have been trading CHTP all the way up with consistent 10-30% swings. Not sure what caused this drop but it doesn't matter. If one was in the stock and following the lofty levels of the FullSto and MACD, they should have been taken profits on some if not all of their shares. The leveling off and curling of these indicators already began approx one week ago. One never knows who far a stock will correct. But what I do know is that one can never lose when taking profits should the FullSto and MACDs be at very overbought levels. As to Friday, when the stock broke the middle bollie (aka MA20) I expected a quick drop as traders left the room. The next potential support level is the MA50, which the stock also closed below by .05. Monday's action will give a better indication of the direction. Will the stock climb back above the 50? Will the multi month rising support line hold? Will the MA100 at 3.25 hold? Or will the stock continue its rapid decline down to the MA200? No one knows. But rather than trying to catch a falling knife which can slice one up, sometimes it's best to simply allow a chart to reset and give a sense of direction. Obviously, should strong, material news be announced, that will always trump the technicals. Going to be interesting to watch. GLTA
Ok, I haven't been in CHTP, but I know a few who have been trading CHTP all the way up with consistent 10-30% swings. Not sure what caused this drop but it doesn't matter. If one was in the stock and following the lofty levels of the FullSto and MACD, they should have been taken profits on some if not all of their shares. The leveling off and curling of these indicators already began approx one week ago. One never knows who far a stock will correct. But what I do know is that one can never lose when taking profits should the FullSto and MACDs be at very overbought levels. As to Friday, when the stock broke the middle bollie (aka MA20) I expected a quick drop as traders left the room. The next potential support level is the MA50, which the stock also closed below by .05. Monday's action will give a better indication of the direction. Will the stock climb back above the 50? Will the multi month rising support line hold? Will the MA100 at 3.25 hold? Or will the stock continue its rapid decline down to the MA200? No one knows. But rather than trying to catch a falling knife which can slice one up, sometimes it's best to simply allow a chart to reset and give a sense of direction. Obviously, should strong, material news be announced, that will always trump the technicals. Going to be interesting to watch. GLTA
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