This chart is a good illustration of why it's a good idea to follow Ms. Market, as best we can, and let her tell us what her intentions are rather than the other way round.
ARIA broke out to the upside just below 13.00. As long as the stock trades above the pattern, it's a bullish breakout and it isn't a real good idea to short it and stay short in this situation as the stock continues higher. Bears who shorted the technical breakout and who have remained short have a paper loss of over 12%. Not very pleasant for them at the moment.
2 comments:
Melf,
Looking at the chart, if it successfully retested the top of the channel, this would be bullish. Would you consider this something that you would consider tradable? (understanding that you look at a number of indicators.
Kevin,
Yes, a retest of a technical breakout is something that I definitely would consider, if I'm watching it.
Remember in the AMZN intraday chart on Friday, when the stock came back and successfully retested the top of The Handle of The Cup & Handle formation and, at the same time. established the fourth data point for another pattern? Bang! Up and Away.
Those successful retests are nice and if there's another pattern formed in the process, like in that example, so much the better ;)
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