The stock gets cut in half in four weeks on very heavy volume and holds tight for the last three weeks on lower volume as the stock market rallied strongly (See Chart Below). The company blundered big time recently by first raising prices and then trying to split in two. They've reversed on the split up, but the price increases stay. The stock reports tomorrow after hours, and in my opinion the report is going to be really bad along with the guidance. You have to imagine that the company took a big financial hit and will need a few quarters to turn around and prove that they are the best again and can fight off the comptetion from Amazon (AMZN), Apple(AAPL), and cable companies. At this point the bulls are so nervous in the stock, that any perceived bad news, especially unexpected bad news, they are ready to sell at any price.
If I'm right, I just termed my first base, The Low Tigh Flag. The reverse of a rare High Tight Flag which is very powerful and profitbale if identified correctly. Coined by William J. Oneil in his book How to Make Money in Stocks (A must read). Time will be the judge. For now, you decide.
As always love to hear the comments and questions.
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| Click on Chart to Enlarge |
If I'm right, I just termed my first base, The Low Tigh Flag. The reverse of a rare High Tight Flag which is very powerful and profitbale if identified correctly. Coined by William J. Oneil in his book How to Make Money in Stocks (A must read). Time will be the judge. For now, you decide.
As always love to hear the comments and questions.
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