Looking even more like the June pattern Today was
Post# of 39368
Looking even more like the June pattern
Today was the first close below the higher low pattern I've been talking about. The pattern still holds unless we see consecutive lower closes, and we're talking about down 2.5 and low 2's etc which is going to be difficult.
I think that today's close is the equivalent of the June 27th close down on the chart. The following day there was the shake and bake at 2.5 cents, with a pierce to 2.2 cents, and then the close back at 2.8 cents.
If pattern plays out we will know, ironically, by seeing some funny business play out on Friday. The markets are open but the volume will be light, which makes it all the more prone to funny business. It may even continue into Monday. However, that still leaves 4 days worth of action and with the 50 DMA moving lower and lower, the hurdle that the price needs to clear in order to trigger the breakout move gets lower and lower.
The bears have done a lot to successfully stuff a pre earnings release breakout. Now it is time to see if they are strong enough to hold off a post earnings release rally. Like I said, I'm looking at 80% chance for a move to a nickel next week, with odds at 70% the following week. If it doesn't happen in that time frame, the pattern is null and we have to watch for the next setup.
Happy Turkey Day everyone, I'll be stuffing myself and watching the Texas vs TCU game tomorrow. Hook'em Treaty!
[IMG]http://i.imgur.com/pTrdE.png[/IMG]
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