Sunday, August 28, 2011

POT analysis for a reader


Here's some POT analysis for a reader of my blog.

Friday was a nice day for POT, as the stock gained 4.65% and busted through the key moving averages, which are stacked quite nicely. Volume was good, as it managed to turnover greater than it's 50 day average, but was not great, as we saw better volume just a few sessions ago.

Resistance is just above at the 62% Fibonacci retracement of the last swing down, followed by the 78.6% retracement at 59.60s. Support sits at the 50% mark of Friday's big green candle, and the moving averages that were just freshly broken.

After expansion days, I like to watch for consoldiation, at least in the AM, so watch for moves BOTH ways for potential fading opportunities until a consodlaiton pattenr forms.

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