#131305
Re: Farmas USA
CRBU
Muy buen post en IV de Dirty Harry sobre encontrar acciones que tocan fondo tras una buena subida anterior:
Muy buen post en IV de Dirty Harry sobre encontrar acciones que tocan fondo tras una buena subida anterior:
Looking for Opportunity in a chart
The board has been very quiet of late and that has been hard for me to understand. The opportunities have been abundant from my viewpoint and I can only assume folks are concerned about the volatility of the markets currently.
Despite living in my 7th decade on this Rock, and moving from one state to another, I have had a stellar month so I'm going to share a bit of how I search for opportunities in scary markets. It is no secret that I expect this 4th Quarter to be a bad one but that matters not. Right now, the markets are still providing opportunities for profitable trading and you have to play the hand you are dealt as a "trader".
In times like these, I like to look for stocks that have recently been beaten up a bit but are far from broken. In recent weeks, I've been starting to play CRBU again and the chart is starting to shape up, imo, for some trading opportunities in the near term future.
The recent IPO euphoria took CRBU to a quick double in just 6 weeks, topping out around $33 in early Sept. What goes up comes down in the stock market and CRBU has since fallen back to a low just under $20 earlier last month. This is where I like to watch the action. There is a process for stocks setting new lows and then changing direction and while one size does not fit all, the patterns repeat themselves again and again.
As a low is being set, there is usually some form of what I call capitulation selling. This is where the die hard fans finally give up, dump their shares and move on to greener pastures. This is manifested by larger volume dumping as the price is driven to the lows. Note the big red candle on Oct 8 in the chart below ... that was the final bail out, with above average volume and a big hit to the price.
After the capitulation selling, I look for the first rally attempt. It usually fails, but not always, and then the recent low is tested either by breaking and setting a new one close to the first or by stopping just short and then resuming the upward climb. Note here that CRBU climbed from around $19 to $23 before failing. Of particular interest to me is the volume from Oct 11 until current ... it has remained very low and below average the entire time. This confirms the sellers are finished and left the premises, leaving shares in the hands of new owners. They are not likely to sell at these prices, barring bad news of some kind.
After the test of the low was successful, at just under $20, CRBU made the 2nd run to near $24 before pulling back to catch it's breath. But this pullback was on extremely low volume and the close each day since has remained above the 13 day EMA line. This is very bullish behavior for a chart. And CRBU has now established the most bullish trend I have found over the years ... higher lows and higher highs since the low was set back on Oct 8.
CRBU may not be a volcano waiting to erupt but it is a bullish chart that should provide a lower risk entry in a volatile market environment and I have taken my position in CRBU, both as a trade and in retirement accounts. As always, do you own due diligence. But from a technical viewpoint, this is a high percentage play, imo.