Yesterday I bought BAS @6.1699. The long bias of the stock is outlined in the following analysis:
1 - Downswing on increasing volume and tight closes: the accumulation phase started here
2 - Decreasing volume on down bars: sellers are exhausted
3 - Effort to rise on ultra high volume: market doesn't like this kind of candles because they could hide sellers, so the stock pauses to test supply
4/5 - Two tests of supply but the following candles failed to confirm them: still weakness
6 - Narrow bar on ultra high volume and the next candle closes higher: stopping volume, more accumulation
7/8 - Confirmed tests of supply
9 - Lack of demand at these prices
10 - Another confirmed test: good long entry
I outlined the possibility of an entry long in my previous post. The S&P started the day rejecting new lows. This was a sign that the long bias could still be correct. Since also the oil & gas sector was acting strongly and BAS too, I waited for a low volume retracement and entered. The price hasn't moved much from my entry point but long seems the right side for the moment.
2 - Decreasing volume on down bars: sellers are exhausted
3 - Effort to rise on ultra high volume: market doesn't like this kind of candles because they could hide sellers, so the stock pauses to test supply
4/5 - Two tests of supply but the following candles failed to confirm them: still weakness
6 - Narrow bar on ultra high volume and the next candle closes higher: stopping volume, more accumulation
7/8 - Confirmed tests of supply
9 - Lack of demand at these prices
10 - Another confirmed test: good long entry
I outlined the possibility of an entry long in my previous post. The S&P started the day rejecting new lows. This was a sign that the long bias could still be correct. Since also the oil & gas sector was acting strongly and BAS too, I waited for a low volume retracement and entered. The price hasn't moved much from my entry point but long seems the right side for the moment.