Daily chart of A2M with Bollinger Bands and 200 Day simple moving average. Mean or average of the Bollinger Bands is 20 period simple moving average. I could also draw trend channels in lieu of Bollinger Bands if I wanted. I prefer the bands since they are widely used in mechanical trading systems. It helps me better understand where those big boys and girls ( funds) may open a position or close a position.
To what matters now. If one pulls up their own charting software and examines the relationship between the Bollinger Bands and the price I have no doubt that it may turn out to be a very educational exercise.
Has the price violated the MEAN/AVERAGE of the Bands ? It did and it is sitting right on it at the close on Friday. If period of July 2017 is examined, it may offer further clues as to what may now unfold. FLAT price action behaviour was what occurred then.
One thing which I dislike here is the GAP DOWN on Wednesday (01/11). It is filled and price has closed below it. This tells me that ZONE of GAP is the short term resistance level to watch.
Now, to the 200 period SIMPLE MOVING AVERGE in Red. Look at the value of it ($3.96). This is how far this beast is away from the long term mean. It will need to catch up with it at some stage.This will be either by force ( sharp pullback) or FLAT price action behaviour. I feel as though, it may be the later, as it was the case in late 2016 from all the available data so far.
As with the volume, it was heavy on the 1st of November when it gapped down. This is another added technical evidence that the uptrend has stalled and flat price action is likely.
Whenever A2M reports or updates the market may be the pivotal point again. One thing for sure is that, without a support from FUNDAMENTALIST FORCES there is no way that TECHNICAL FORCES could have driven it to where it was. Question is, are the SMART MONEY (Fundamentalist Forces) taking partial profits before the next anticipated up leg or are they exiting altogether ? So far, there is no technical data to suggest that it is being distributed but rather partial profit taking behaviour.
K.I.S.S ( Keep It Simple and Stupid) applied: TO MAKE THINGS SIMPLER, SHOULD THE ANALYSIS VIEW IS MINIMUM WEEKS/MONTHS, ONE MAY SWITCH TO WEEKLY CHARTS AND LOOK FOR A BEARISH PIVOT OVER THE COMING WEEKS. IF ONE IS ON HAND ( SIMPLE OR IN COMLEX FORM), THAT WOULD THEN ADD AN EXTRA WEIGH EVIDENCE OF A CORRECTION BEING UNDERWAY. IN TERMS OF IT’S DAILY CHART ANALYSIS, I CAN SEE THAT ONE (CORRECTION) HAS ALREADY STARTED.WHAT WE DON’T KNOW IS, HOW DEEP AND HOW LONG IT MAY BE.
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