BA stock overviewOleg Alexandrov
#BA #stock is moving slightly down since March month. You can see a lot of volume on down bars on those days. That quick change was powered by tragedy news – airplane dropped. It was really unexpected news. We can not find any signs of bearish reversal from chart. Many investors sold their stocks. We can easily plot the channel using local highs and lows (green circles).
Note how price and volume around lines give you confirmation of reversals.
1) #NS+#DB around the support line
2) The sequence of weakness around the resistance line
The very recent drop formed #EVRB bar 21/Oct. Narrow range, extra high volume just at the line of support. People did feel panic after big gap down opening that day. However, as we can see in hindsight, price rejected to develop decline, So, it was hidden strength from EVRB day.
Despite stock is acting weaker than index (orange line), you are justified to rely on support around bottom blue line. Longs can be established there. The closer to line of support- the better. But be cautious if price will extend decline amid increasing volume. It will be a sign of breaking down through support.
Thanks for reading.
Yes, You Can Become a Professional Chart Reader
To build success in any business, you should rely on things that really work.
In Chart Reading Method, they are three: The Law of Inequality, The Law of Supply & Demand, The Law of Effort & Result.
Download free books, to understand how can you apply the Laws and convert charts into profitable setups daily!
Enter your email to Download books
No spam is guaranteed.