Well, I dumped this yesterday morning because it popped a buck, and made some decent money. Decided to plot this to see where it's headed. Based on losing the 50DMA and the price action this morning, one has to assume the action after earnings is a bear flag.
So I plotted the bear flag and target zone. Old resistance is usually new support, and this stock tends to fill open gaps. There are now 2 open gaps above, but I think it'll be a while before they fill.
Still on my watch list but not trading it for now.
So I plotted the bear flag and target zone. Old resistance is usually new support, and this stock tends to fill open gaps. There are now 2 open gaps above, but I think it'll be a while before they fill.
Still on my watch list but not trading it for now.
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Note: I have seen PCAR do some weird stuff with gaps like this, it could fill that gap as soon as tomorrow so not shorting. Just playing this conservatively for now.
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Weird whipsaw day, but I think it's a continuation pattern DOWN. it did close the morning gap though.
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The main reason why I don't short this stock is the same reason why I like it as a long holding..... it has a tendency to fill open gaps down. You can make a lot more money on stocks like GM or XLF that tend to follow through when it gaps down.