Are you a believer now or what? A doji near support has the propensity to initiate a bounce the next day. In other words, if you make a bet on every doji bar near major support looking for a bounce, you will come out ahead in the long-run (and vice versa for a drop if a doji formed near major resistance).
In one fell swoop, price closed above both 79 & 89 MA support which is very bullish. Seeing that both momentum indicators below are just turning up, there may be more room for the bull to move higher.
Unfortunately, I cannot say the same for my port since $LRAD, $AMRN, and $BIOC all closed lower.
$AMRN chart below:
While $AMRN closed lower, there is support around the $2.27 area based on previous lows formed in late March and April. As long as price is above the 79 & 89 MA support lines, the overall trend is still up. Profit-taking is expected when the latest news event ran its course after a big run-up from late May.
$BIOC chart below:
$BIOC dropped some but is still hugging the uptrend line. No breakout is happening yet.
$CERS chart below:
$CERS is the only one that bounced today in my port even after a bearish engulfment bar yesterday. This is the reason why I’m more inclined to hold on to my $AMRN and $BIOC when I believe there is enough fundamental to support a positive long-term outlook.. You never know when a bounce is going to happen. It can happen all of a sudden and leave me in the dust if I’ve taken profit too soon.
$LRAD chart below:
Absence of news regarding the sales of mass notification system to the Middle East cities, impatient traders sold shares to go elsewhere. Or it could be someone wanted to buy cheap and forced the price to stay down- just like $CERS was forced to stay at low $4 for awhile before being bid up. Since I believe in their technology, there is nothing for me to do but wait.
With three down, my port gave back another 1% for the day. YTD gain is now at 12.8%.
LRAD, AMRN, BIOC, CERS and 4% cash.
My 2 cents.
Categories: Daily trading Journal