Originally Posted by
JohnnyTheHorse
Funnily enough the most likely scenario plays out most of the time :). Also full disclosure I didn't sell my swing trade position at that level with the expectation of adding again lower as I believe the risk of not holding that position overnight is too great. Very happy to sit and wait on this one (which is very unusual for me).
Just like the drop from $2.75 to $2.35 was very healthy weekly consolidation, the drop from $2.75 to the $2.60-$2.65 region is very healthy daily consolidation (in that whole run up we never changed the daily trend). Ideal scenario is a daily bullflag forming here, so that a daily and weekly bullflag breaks at the same time (i.e. most catalyst for momentum upwards). If I had to guess again, I'd say we hold this $2.60-$2.65 level for 2-3 days to allow the daily EMA12 to catch up, then we're off to the races. However price action is low volume, weird trading and potentially news driven, so probabilities around technicals are less clear imo.
If I didn't already have a position I would certainly be scouting one right here.