AKS
- first check out the crappy gapping around here at the top in the red circle. tops are often plagued by squirrelly action like this
- for the last few days or so, notice the negative divergence between price and volume - as price is gapping up, the volume is decreasing
- with an indicator like rsi, we like to see the rsi go up with price, and a divergence like in this case often signal tops, or temporary tops before pullbacks, corrections, or what have you
- check out the red circles - they show ATI making a new high on horrible volume
- the blue circle shows that same crappy gapping
- finally, with both volume and rsi, we see negative divergence with price
- green circle shows bounce off of short term trend line; however, the red circles highlight falling below that line and then 2 failed attempts at breaking back above it before gapping down
- the purple circles show new high on horrible volume
- don't forget the crappy gapping in the blue circle
- and finally don't forget your negative divergences
3 comments:
Risk in shorting steel is in mergers and acquisitions. You never know which company wil be bought on Monday.
do you mean that steel is slated to go thru some kind of M&A phase? or just in general, there's always the risk of being bought?
Most of those stocks are running because of M&A rumors.
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