First of all I want to provide a little background. I am not a daytrader and don't know much about Technical Analysis. I started an account with Elite Trader to learn more about entering and exiting positions. Currently, I hold a position in only one stock, RMBS. Because of fundamentals, I truly believe this stock has explosive growth potential. Last Thursday, the big money manipulated the stock and pushed it down 17 dollars in minutes. It then recovered 10 points right away. The company won a law suit on Monday and the stock really didn't do much. I provided a candlestick chart and would appreciate if someone could tell me what's going on technically. Thanks in advance!
I don't see a chart. Try to post the chart you are looking at, so we can see what you are looking at. I just glanced at it, and it looks like either a double top, or an upside down flag formation. -Kastro
How great was that move?? I dont trade Naz but watched our firm position play in and out of it. The firm was short like 15k shares and caught 7 points, and then someone else went long about 2700 shares at 30.25 and covered at 40.50 ish about 3 mins later. Not bad for a few mins work
Might trade between 46 and 38 for a while, but I think after that, it's heading south. What do you think steve? -Kastro
I agree, looks like it could be rangebound for a bit. Predicting longer time frames is really not my forte though, I am still just a lowly daytrader
"Might trade between 46 and 38 for a while, but I think after that, it's heading south. What do you think steve? -Kastro" Thanks for the response Kastro. I'm trying to understand why you think it will trade down after breaking the 38-46 range. Is there some type of pattern you recognize?
"I agree, looks like it could be rangebound for a bit. Predicting longer time frames is really not my forte though, I am still just a lowly daytrader" Thanks Steve. What type of indicators do you use during the day to help you take a position? I'm just learning about candlesticks, RSI, and EMA - but can't really put it to use just yet. Also, sorry all I tried to post the candlestick chart - but didn't see an attach button.
Like I said, looks like either a double top, or an upside down flag formation, so if that is true, you will see it head south when the support is broken. -Kastro
RMBS is news driven, has very high volatility, so I don't think that TA on it can be meaningful. For me, the probable reward doesn't justify the risk, neither long nor short.