JOY gaps down past previous support

28 ene 2015

I last looked at JOY on 12th December 2014 when it gapped down (confirming an inverted cup and handle formation).

At the time there were still a few support zones to tackle - plus earnings. So although I felt that in the longer-term price would continue to fall I wanted to wait for price to clear these hurdles.

Unfortunately this meant waiting for the cup and handle measured move to complete - which it did on yesterday's gap down. However, it was worth the wait as after the earnings announcement price retested the cup and handle rim (with support turning into resistance). And there was still the 2010 pivot low Of $42.45 to clear.

Now there is no obvious further support until the $30 zone. Worth shorting if you are happy to sell in an overall bull market - although if I take this trade I will want added confirmation by waiting for price to break below the $40 round number.