RVBD, price and volume, and when to cover or at least not be bearish anymore

intraday post

this chart of RVBD and the red box highlights consolidation (kinda the opposite of distribution) after a multiday fall and big volume capitulation. in the red box we see big volume without the price moving much. lots of shares are changing hands with almost equal buyers and sellers. this is usually a good sign to cover and wait for a low volume bounce to a critical resistance line. in the red box we also see a tag of the blue uptrend line - this provided support too. that's why i like trendlines - when things come together like this, which they often do, you can get a good idea about what is going to happen.

RVBD - intraday chart

update - RVBD has kept going down all day...

RVBD dropped out of its trading range today... check back with it at the end of the day to see where it closes and the final volume tally. see all RVBD posting charting here.

short candidates for your consideration

RVBD comes to us via mdawsz over at Get Short! i like the chart and it displays a nice combination of red flags (i lost count) that should cause longs in this stock to get a little worried:

• the blue circle highlights a failed breakout attempt and notice the low volume 2 trading days before that huge gap down
• the most recent big volume spike seems to indicate distribution as volume was huge but the the stock went no where
• the purple cicle highlights a failure at the longest term uptrend line possible and the stock gapped down at the open and closed today under the 50-day moving average
• finally, notice how the stock is working its way "across" the red parallel uptrend lines and the stock keeps failing at these lines

at the time of composing this post, the asian markets were up... in my opinion, tomorrow is a wild card. the market attempted a bounce today, and to be honest, i was surprise at how short-lived it was. if the asian markets close strong, i imagine US markets will follow tomorrow, but of course there are no guarantees. i am hesitant to put up too many more charts right now - pretty much every stock on my watchlist is at a kind of cross roads, and it seems most of them will be looking to the overall markets to set the tone tomorrow.

otherwise, ENER and MEDI are worth keeping an eye on first thing tomorrow - if they open weak and make easily obtainable recent new lows on decent volume, they might be worth a trade.