http://stocktwits.com/message/29920441
The basis of the post was the sharp momentum move in the stock and a quick look at levels.
My analysis was: "O/bt daily but room higher on weekly. 9-9.25 gap key (sits at 50ma also). Buy support there or above 10."
In long hand this was stating that the daily RSI was in overbought territory on the daily but the weekly had room to go higher. I was highlighting that the $9.00 - 9.25 gap was key. If it held, then a push through $10 was possible.
The real advice I was giving was to urge a little caution at the current level. Many will see a strong move and dive in, but I wouldn't have bought at that level of $9.84. I would rather buy support around $9 or even higher, over $10, if the stock broke out.
The price between $9-10 is actually a bit of a no-man's-land so it is better to put it on a watch list and wait the better price, to adjust your risk more efficiently.
So how did the stock perform?
This is the daily chart of On, 5 days later. As you can see, it's slightly lower than the $9.83 price we could've had. The stock actually closed through $10, a short pullback led to a low volume follow-through which couldn't get above that level again. We now have a strong bearish close back into the 9s. The 50 and 200ma could provide support on bearish continuation so it was right to urge a little caution previously as the close above $10 is looking like a false breakout.
(You can see the overbought condition on the daily chart. I don't always use the RSI as it can be inaccurate for timing but it can add some context to a move).
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