Yep..agree....the TA and candles are showing that downward pressure
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Coming together nicely since entry on 30 May - AIR has put in a higher low for the first time since breaking, then retesting the very steep downtrend line. A higher high on a closing basis anywhere above 2.31 would be gratefully accepted as a fruitful development.
Of course, a stop level can now be raised to 'sell after a close below 2.13', instead of 'sell after a close below 2.02'
Oooh, yes, Hoop you are correct to point out the closing high to be surpassed is indeed 224 - my bad. The hurdle therefore is less of a task than I thought :t_up:
of course it needn't be today, but I'd take it
Closing on its low for the day at $2.22 wasn't the sort of response to the VAH sale one might have hoped for.
Interesting how it played on investor sentiment, perhaps people trying to work out the difference between getting mostly out of VAH at a large loss, versus speculation that a special divvy will be paid.
The chart daily candle shows a classic gap up open on speculation, then turned away at exactly the 23.6% fib retrace and long term support (now resistance) and sell off during the day as the news is digested, to close on the day low price, leaving a small gap from the day previous. That's not the sort of price action to give confidence of a positive follow through on Monday.
Short term support may be found on the steep rising trend line around 2.18 (below that 2.13). If that happened a short term rising pennant may have formed with resistance at 2.26.
Attachment 8103
Overall..Up 5c for the day (2.3%) is good..late selling is suspect..
AIR seems to be affected by Global airline index behaviour and XAL tanked Friday as did Wall St in general..that's not good for for AIR come Monday...but as Xerof points out there are rising low points at the moment so hopefully the next one will be above the $2.13 level..
An interesting article on Stockcharts yesterday involving Richard Wyckoff's work...The author Bruce Fraser applies Wyckoff's power charting to the Dow Jones US Airline Index
Hmmm..yes..that Fib coming into play like that suggests that announcement triggered an instinctive trading behaviour.... sometimes instinctive trading isn't built around rationality...With time we will find out if this possible up trend has any substance....Have to remind oneself that this is an attempted up trend inside Bear territory
XAL down 2.3% overnight - that's some drop