This chart should be self-explanatory. If it cannot close over 8.25, then your entire position should be sold. Right now the price is funneled into a descending triangle and the gap is being used as support. If the price bounces off the top trend line, then you should *immediately* exit your position. If the bottom of the triangle fails for whatever reason, then the target price becomes 3.5. By going long, you have placed your capital in severe jeopardy. The price needs to exit out of the top or it will exit out of the bottom. This formation indicates distribution. Please be very careful.
Tarl, This is not the Yahoo message board and we are here to help each other out. We ARE NOT here to pump and dump or short and distort. I showed you the pattern that is taking place, thats my honest opinion. Now if your too immature to accept the pattern then you should go back to your Yahoo message board. Why not discuss the pattern in a mature and concise manner rather then ranting and raving like your in 1st grade? Now if Im wrong, then Im wrong. This is a textbook descending triangle and I showed you two examples of what has happened in the past with this pattern. If the price does not exit the top, then it will most likely come down hard. Its in the final phase. You have a lot of growing up to do and if your 40+ years old then I feel sorry for you. You should be thankful that someone is coming out to help you. I have no position in this stock and other traders would just watch you and laugh as you trade through a tricky pattern. Im giving you fair warning. If it doesnt exit the top, then it will come down and you'll learn the same lesson that those other traders found out with the two charts I showed. If it does exit the top, then that will be a bullish sign. I would like an apology for your immature behavior. Next time I'll just watch and laugh as you trade through a mess.
This is your last warning. The stock traded exactly to what I have charted. It did not break 8.3 today and came right back down. The next stop is for the high 6s and if it does not hold then it *will fall* past that gap on the chart. Anything can happen during the earnings call. The only way to stop this chart from playing itself out is for a miracle to happen during the earnings call. Even good numbers wont stop it from trending back down. The numbers need to be way better then expected. As for the analysts, if the price takes a dive, then they will simply downgrade the stock. Dont take this gamble, book your profit or take your small loss now.
Next week is the catalyst event. On May 10 - it will be do or die for this stock. Their last earnings was above estimate but they still dropped like a turd. I still have my calls but I might sell out on monday depending on the market sentiment. If I can get some cheap puts I'll go in - just in case.
You can successfully trade through this triangle, but I think we are now at the end. If it does fall to 3.5, then you will have a multi-bagger again. The analysts are very bullish on this one, but the chart tells me something different. Look at the 30 week moving average on this chart. In fact, compare what happened exactly one year ago to today. When the stock ducked underneath the 30 week moving average last year then it was 15 weeks to the bottom. The good news is that you will have a multi-bagger when it gets that low. http://stockcharts.com/h-sc/ui?s=BRLC&p=W&b=5&g=0&id=p79884527073 Lets review the situation a little further: - price is under 30 week moving average - descending triangle is obvious on the chart - companies that sell TVs like Circuit City are taking it on the chin - we are in May and a crucial Fed meeting is ahead that could be the tipping point - Cramer pumps are failing to prop the stock up - Market strong today, but BRLC down and bounced off the upper trend line - Institutions no longer propping the stock, but short term swing/day traders on the yahoo message boards It could very well exit out of the top, but I wouldnt bet my last dollar on it.