HSOA.PK

[ScottishTrader]

Well HOM dumped hard and I don't think any of us figured out why

Many have sold out of this one today, but I'm not too sure where this will go tomorrow.  The main issue is that HOM slammed right through David's sharp ascending trendline, which is the clear sell signal.  This would be alright if it hadn't dropped another 50 cents below it

But I just want to mention a couple of things.  One is that the last big gainer here, VPHM, which had a very similar set up to HOM, was also sold because it broke a technical support line (though there it was David's call on the 9 ema), only to push on to new highs shortly after.  VPHM, like HOM, has a strong fundamental story that underpins this rise, and (with its volume, recent news and support) HOM could easily follow VPHMs suit.

Now technically, while the sharp linear ascending trendline has been broken, there is still a valid ascending trendline when we look at the log chart.  At the moment this stands fairly low (and lower than most of us want to hold this) at around $3.50, but if we are seeing the beginning of a retracement as opposed to a single day of heavy profit taking, then this is around the level I would expect us to retrace to.  We have also had a cross over of the MACD and 9 ema today, which could signal a retracement on this one.  Don't forget that HOM has been rising very sharply, and has gotten a long way away from this trendline over recent weeks.

I suppose all I am saying is keep a close eye on this one, and if you are out for now, know where and when to get back in, because it is going MUCH MUCH higher

[aix]

Great points made by all. Although I would like to hear what David thinks I think we all know he will stick to his trading plan and sell.

I am thinking of adding at this level. I agree with the idea that HOM is setting up like VPHM.

Good luck all

aix

[starfire]

I agree, because of the fundamentals, it will find support at the secondary trend line which is about $3.50. I sold out per David's analysis but looking to re-enter.

[Prfsr Hal]

I was away from home all day and came back to find this shambles.  I will either be a raggy bag holder or lucky by default if it recovers.  I have to hold it now.  (I see also that EYII hit .18 briefly, which if I had seen I would have happily sold.) Ah, well.  Good thng it's only money.

Prfsr Hal

[gharknes]

Just one more point here, look very carefully at HOM'S chart, it seems to take these sudden drops on a cyclic basis, I bought HOM at 3.50 (a late joiner) watched it rise to the 4.25 area over a few days then drop like a stone back to the 3.50 area very very quickly indeed, I made a post here at the time, next day it recovered back to the 4 area (again very quickly) then continued to rise to its current level.....then slam it happened again, now I could be wrong here but I have a gut feel this is a repeat performance, we could see a sharp rise back to the high 4's over the next 2 days, the only difference on this occasion is the general market environment (turning bearish) it's a tough call, the stock has broken davids trend line and that was a sell indicator at 4.76, that is not to say that david doesn't have an entry point when it dives to this level, I felt very temped to buy this at the close yesterday but decided to wait and see because of general market conditions, I also wanted to hear davids take on this. sorry for my none technical view.

good luck all

[AussieTrader]

AussieTrader Right now HOM is consolidating around $5, in fact it is fighting somewhat to turn $5 resistance into $5 support a battle between bulls and bears taking place here for sure.

Bears won the $5 fight, I stopped out around $4.4. No problem I have a 50%+ gain and can look to get back in if the chart sets up right.

HOM closed at the LOD which is never a good technical sign. I would expect to see consolidation around the $4 zone now and await the averages / support to re-position. Out of interest take a look at the AOB chart and then HOM chart, both had a bull bear fight at $5 with spike action through it. Both succombed to selling pressure and fell back hard. Their charts are very similar.

A word of caution, a lot of strong charts are turning over right now. HOM fundamentals haven't changed, just the chart.

[Amarens]

Well HOM dumped hard and I don't think any of us figured out why

But I just want to mention a couple of things.  One is that the last big gainer here, VPHM, which had a very similar set up to HOM, was also sold because it broke a technical support line (though there it was David's call on the 9 ema), only to push on to new highs shortly after.  VPHM, like HOM, has a strong fundamental story that underpins this rise, and (with its volume, recent news and support) HOM could easily follow VPHMs suit.

Now technically, while the sharp linear ascending trendline has been broken, there is still a valid ascending trendline when we look at the log chart.  At the moment this stands fairly low (and lower than most of us want to hold this) at around $3.50, but if we are seeing the beginning of a retracement as opposed to a single day of heavy profit taking, then this is around the level I would expect us to retrace to.

Applaud ScottishTrader! You wrote down my thoughts exactly. Actually I asked David a couple of days ago why he brings in a second TL and how that relates to the first one. He answered the first part of the question but not the second. In case of HOM I've kept TL1 in place, even though I got back in very late. I believe the market being right in this case that it corrected the (maybe too) fast rise of HOM to go back to TL1. Which for the ones that had a profit would have been a good day to take profit and get back in at a lower level 

I will hold on unless it looks like HOM will close lower than TL1. I will keep in the back of my mind the bearish market right now. Which does not give me the pleasants of feelings  .

Guess David will be doing a lot of selling today.

Amarens

[David Randolph]

Great posts here on HOM's thread. Well, I've sold out 1 hour before the close at $4.35 (still made a 46% profit), when it was perfectly clear the stock would close below TL2.

It looks like in this case it would have been better to stop intraday when the stock broke TL2 on the downside. Or looking to sell near the highs. I figure that since I make these updates everyday I can make an effort of trying to be more accurate at selling, since I also didn't like to let an 80% profit turn into just 46% in two days  Anyway, of course this was better than losing 

The comparison with VPHM doesn't make any technical sense now. You see, VPHM took off from $1.67 with a trendline supporting price. That trendline had a $0.12 advance per day slope. VPHM is at $20 now and NEVER closed below that trendline.

That was not the case with HOM, it couldn't hold such an inclined trendline.

I see no fundamental reason for yesterday's decline, but I believe the market always knows better. I will be looking to buy back the stock at TL1, which for today will come at $3.01, rising just $0.03 per trading day.

Good luck to those who continue to hold 

[Melf Elf]

Congratulations, David.  46% still is a very nice gain.  Applause.

Your TL1 looks look the lead-in phase of a Bump and Run Pattern; Your TL2, which was broken yesterday, the bump phase.  In the link below, the rally in HOM looks very similar to the sample chart presented.

Here's the pattern, if anyone wants to read it:

http://www.stockcharts.com/education/ChartAnalysis/images/barr-intl.png

[echo]

David,

Just a thought but maybe you could put a stop loss on these stocks and the loss you would be taking would obviously be less.(even though HOM gave us gains either way but a stop loss would have saved maybe some 15-25 cents)

Maybe you could put a stop loss that is a little below the trend line to give it a little lee way.
Just a thought.

[jorgegr]

Believe the stop loss for HOM was clearly stablished between TL1 and TL2
and RITA fortunatelly wasn't as destructive as expected, therefore some of us got out
on monday. This was an excellent pick and with high profits for all,  just like VPHM.
Applauds again for David. 

jorgegr

[cumulina]

I didn't get around to sell, and it was not fun to watch the dip today!

Fortunately it's up again now, and I hope it will continue that way.

Crossing my fingers 

Cheers.

[ScottishTrader]

Not a happy camper with HOM

Saw the drop first thing, and thought we were going to tank all the way to $3.50 today, and ended up selling close to the low of the day, wiping most of my profits off the board    Wish I had slept in!
Still up tho, always gotta look at the bright side

I was with you cumulina, wanting to see what today would bring, but unfortunately got caught into the panic selling trap - gotta learn how to control that one.

Now I just have to follow my plan for re-entry and look for that retrace back to $3.50, but filling todays gap looks promising for a turnaround    Anyone else with technical thoughts of where this may go short term?  May have to just see where it is trying to close today.

[cumulina]

Hi again,ScottishTrader.

You panic-sell..........I panic-hold! 

I'll sell you mine at $4.75. (My entry price is 4.70)

How about that for a deal? 

...oh: my gold-stock are all up today. Didn't get around to sell those either 

Cheers!

[gharknes]

my re-entry point on this stock will be 3.50-60 because this was original support ,old resistance was at 4.20 if it doesn't break through i would expect it to drop, not sure if we will see that price again but i have learned to be patient.

good luck all