Hi, friends in the stock market world and Internet city! I am writing this from Indianapolis, Indiana right now, visiting a good friend of mine. We chatted stocks today, just had dinner with his family, and began to write for you fine folks! There was so much buzz about Tekmira (TKMR) today, I couldn’t resist the urge to do what I do well: cut through the noise, clutter, and news, and look at the sentiment of the chart, review the candles and try to interpret the story of the buyers and sellers.
What caused this stock to surge overnight was a news story about the CDC coming out with the first reported case of Ebola in The United States.
You’ll likely notice TKMR was making higher lows the most recent two months.
The first black arrow is pointing to a strong gap in August 2014. This gap was retested and the confirming bounce was on 9/15/14. Since then, the selling pressure of the 9/11/14 candle was (and is) quite strong. It appears, since the 9/30/14 candle was white, this gap will also be a retest gap. So, if we get a black candle, followed by a white candle that opens and closes above the prior candle’s close, I would expect a bounce. Honestly, this could happen as soon as 10/2/14. The purple ascending triangle that I drew would signify this resistance around $25 would become old resistance, new support. If we bounce, the stop would be placed in the gap and the target would be $30.70. If you have any questions feel free to leave a comment below. I’ll be keeping many people updated on this current, newsworthy stock as I do anticipate this gap being more bullish than bearish!
Enjoy your weekend, folks!
