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Re:IILG

Freebs2016Freebs2016 ✭
in Other StockCharts Questions
All the indicators for this stock were bullish,so was the chart.
So what caused the big drop in price this AM (May 20) ?

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    markdmarkd mod
    edited May 2016
    Looks like it was a shakeout of early buyers. There was a lot of selling at the top of the range (the big wick on high volume on May 13) so it looks like it was not quite ready to go. Its been in an extended down trend, so as it turns up the higher prices are going to attract selling from people who have been holding losses. A higher volume breakout above the range that does not attract heavy selling would be a safer place to get in because it would show the sellers are gone. Or the low volume test of the lows on Friday shows that lower prices are not attracting sellers, so an aggressive entry would be today in anticipation (without evidence) that the selling above the range is done.
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