CSUN
I still have 200 shares of CSUN on my friend's account. His shares missed a nice $600 profit because of the stupid Etrade trading policy. I hope I am able to sell it for him by next week. Here is what I see from looking at CSUN's chart (click the chart to see a full chart):
(1) It's 0.618 fib retracement is at $13.64, 0.618 usually serves a support on a momo stock pulls back.
(2) When looking at the market profile, the lower bound is at $13.7, most trades are over $13.70, the point of control is at $14.80 (value area).
(3) I think this CSUN could dip to that area to test the support. If it goes lower that that area in premarket Monday, it should go back to 13.70 when the market opens.
(4) CSUN is trying to find the lower trading range, so RSI indicator should work. Looking for RSI drops near or below 70-80 on 60/30 minutes chart. Right now it is around 40% on 60 minutes chart and 30% on 30 minutes chart.
(5) If 13.50-13.70 area won't hold, all bets will be off, take 0.20 stop loss, looking for $12 as the support.
Of course, if the broad market is down, esp on these Chinese ADRs, it cannot perform well either. Friday afternoon, most Chinese ADRs went down hard on Chinese's government policy change on Yuan and bank rates news.
3 comments:
The low on CSUN was a touch of 13.75. It has not traded below $14 since then. I think that's the bottom.
I understand the premiss of Fib's but calculating actual distance of these charts confuses me. 2,3,5 OK. up 3 dn 2... up 5, dn 3... OK but how far in those directions? My Charts are hard to figure out.
.618... Hmmm. All reasearch I have done focuses on 2,3,& 5, but not on the .618 part. I figure this is how you calculate the amount of the + or - move. But not much else.
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