I think it is under accumulation, of course they want to get it at low price thus back and forth action.
Thanks Michael. Love the office and your RIMM charts. The last one, "RIMM Rising Wedge"...Bullish or Bearish?
The RIMM chart I will have to place in the bearish slot. The rising wedge, the three notable tops, the large gap that sits staring at us on the chart, etc. However, there is a volatility event ahead (earnings call) that might suddenly change the chart. If the call does not go well, then I predict we will see a filling of that gap. There are very high expectations of RIMM and so the call has to do more then just beat. I would place my money in the bears camp going into the call. I will tackle more of these charts over the weekend.
Chevron CVX- Primary/Secondary Trendline, Triple Top Reversal or Continuation, B.A.R.F. Since 2004, Chevron has been traveling up one main primary trend line that it always seems to get back to at one point or the other. Usually around the summer driving season, we see Chevron travel up a secondary trend line. Buying Chevron in March-May seems to have always been a good call. Selling it at the end of the year when it had risen over 20% of the primary trend line would have also been a good call. I did a quick analysis of the primary trend line. When the price rises over 20% of the primary trend line then the stock gets to be in a dangerous condition. This is a sell signal. In March of 2006, the price rose on the secondary trend line and never came back down to meet the primary trend. This is not a healthy condition. Technically speaking, this should be a 58 dollar stock. At the very end of the chart, I have circled three notable points. This is either a triple top reversal or a triple top continuation. Sometimes these triple tops can fool you. GS had a triple top over the summer and then broke through the resistance and went on to be a 200 dollar stock. The RSI appears to be bouncing off the top line. The accumulation/distribution line has a negative divergence with the overall price (a bad sign). Conclusion- The price will come down from the current point and will either bounce or break through the secondary trend line. If it is able to bounce through the secondary trend line, then it will make another stab at the 75 dollar resistance point. If it is able to go through the 75 dollar mark, then the price target will become 90 dollars. Notice how the secondary trend line and the resistance are forming a triangle and the price is entering the apex. If we take the height of this triangle and add it to the resistance then we get 98 as a price target. So if the resistance is violated, then we can feel comfortable with a 90-98 range. If it pierces through the secondary trend line, then the price target will become high 50s-low 60s. It the price pierces through the primary trend line, then this will become a B.A.R.F. formation. The price target of the B.A.R.F. is the 46. I say go short at the current price with a buystop set at 76. Monitor the price as it approaches the secondary trend line. Cover if it appears to bounce into the apex. If it pierces the secondary, then you have the perfect short. Monitor it as it moves to the primary trend line. Cover if it bounces. If it does not bounce, then it will keep going.
Rack is a risky game of chance filled with volatility events that create huge gaps in the chart. If you insist on spinning the wheel, then I say to mark the end and start points of all gaps on the chart. Then you see form a map of different pivot points. These pivot points can easily turn support or resistance. You can long it when it bounces off the bottom of one of the beams or short it when it bounces off the top. A look at on-balance volume and accum/dist suggests that this was a good long back in August of 2006. There was not a large drop in either the on/balance volume or the accum/dist. However, this time is different because there was a large drop in both. I wouldnt trade this stock personally because of the huge risks involved. The company has a history of volatility events that have cut the price in half twice in the last year. If I were pressed for an answer, I say to long it at 16 and close out the trade in the high 17s. If it gets above 18, then we might consider another long position. If it gets through 15, then 14 or 11 dollars is likely. Right now it appears the price is heading back to 16. I say it will bounce off of 16 and re-test the high 17s. If it bounces off of the high 17s, go short and cover in the low 16s. If it pierces through 16, next stop is the bottom of the chart. If it gets past 18 with conviction, then next stop is 20. I say it will eventually hit the bottom of the chart in 6 months. This last dump was very serious as the on balance vol and accum/dist line suggests. Investors have been burned twice. First time burned shame on you, second time burned shame on me, third time around we dont play the game.
i dabbled in RACK for a bit - did not get what i wanted out of it! but the chart still fascinates me to this day.