ADST

[J.Livermore]

This one is just an alert. The trading range upside level is $0.90, the volume is increasing, giving a lot of momentum to this short term up move.
In case of breaking $0.90 ADST could fly up to higher levels, so this one must be on the watch list.

[nikao]

I've been watching ADST for a while now, and unfortunately I missed the rise due to my holidays.
But yesterday it printed a huge Doji.. what to think of this?
I think the chart is showing some paralel price channels.. is it in a new channel now? would it be good to buy now and hold it as long as it holds the channel? or should i give it room to fall back in the previous channel (since the chart still will be bullish then)

[nikao]

ADST gapped up with an open at 1.65!!
after the closure of the gap I stepped in at 1.31, Expect the stock to climb up again (if we only get half way..we are getting a nice hammer )
trading Volume is also way above avarage (500% already)

[nikao]

closed at 1,46. Not as high as i wanted it to close.. but stil
also very high on volume.. But i don't know the different candle patterns very well yet.. what to think of the one that printed today?

for a hammer the shaddow has to be twice as long as the body right?.. we could call this a hammer then.. but the black candle doesn't look to nice for me.. what to do with this baby?

[nikao]

i've updated the chart above.
I really don't know what to think of this picture.
The candle is almost completely out of the boilinger band, is this a sign for a reversal?
If you look at the intraday chart the stock ended strong up so one could think this will continue at the opening on monday.. what would be a good strategy in this case?.. what price would be a logical and good stop loss?

[gabillh]

ADST broke out of a nice base and on pretty good volumn.....What I think is that a little profit taking has come into the picture. watch for volumn to increase, and if it doesnt, then expect stock to retest this breakout, establish a base somewhere between 1.20 and its current high....I would not chase this stock as it will correct, and close the gap that we just saw. Volumn of 1-2 million would be a good sign that this stock will continued its current move.  However, the 200 dma and overhead resistance at  $1.50 level will have to be tested yet.
Once we have cleared these temp barriers, then the next overhead resistance will be in the $2.50-3.00 level .......happy trading...........Bill the Bull   [email protected]

[nikao]

ADST broke out of a nice base and on pretty good volumn.....What I think is that a little profit taking has come into the picture. watch for volumn to increase, and if it doesnt, then expect stock to retest this breakout, establish a base somewhere between 1.20 and its current high....I would not chase this stock as it will correct, and close the gap that we just saw. Volumn of 1-2 million would be a good sign that this stock will continued its current move.  However, the 200 dma and overhead resistance at  $1.50 level will have to be tested yet.
Once we have cleared these temp barriers, then the next overhead resistance will be in the $2.50-3.00 level .......happy trading...........Bill the Bull   [email protected]

thx for your reply.

The gap was filled imidiately and afterwards the stock went back up .. (that;s why i entered in the firstplace.. as i expected it to ris after the test of the gap)

[nikao]

ADST is pulling back to test the support of the ascending trend. With the MA50 crossing the MA200 right now this is a strong buy for me

[Melf Elf]

Nikao,

It looks like this one could take some patience 

After the Inverse H&S breakout, ADST got to the target pretty fast.  The July 15 gap up to 1.65, the high of the day, was just above the target.

While it could go back up there for a re-test, it looks like it needs to do some consolidation (backing and filling) to put in a right shouder for another Inverse H&S breakout above 1.65.  That would get it up to the target area that Bill The Bull mentioned.  Applause to Bill The Bull.

[nikao]

Nikao,

It looks like this one could take some patience 

After the Inverse H&S breakout, ADST got to the target pretty fast.  The July 15 gap up to 1.65, the high of the day, was just above the target.

While it could go back up there for a re-test, it looks like it needs to do some consolidation (backing and filling) to put in a right shouder for another Inverse H&S breakout above 1.65.  That would get it up to the target area that Bill The Bull mentioned.  Applause to Bill The Bull.

thx for your opinion on this one..

I'll hold the stock as long as the support of the ascending price channel holds.. It's a great company operating in a growing market sector.. so fundamentaly i like this one as well..

[nikao]

ADST printed a Doji. After the white hammer of the day before I think we´re about to go up (fast) again.

There are a lot of people who got in at the range of 1,40 - 1,50  so these are all long people 

[Melf Elf]

ADST printed a Doji. After the white hammer of the day before I think we´re about to go up (fast) again.

Yeah, that's looking a little better, isn't it?  IMOS violated its bull flag intraday, but opened and closed (higher) within the bull flag, so that's looking a little better, too.   

There are a lot of people who got in at the range of 1,40 - 1,50  so these are all long people  ;

Unfortunately, that's not a good thing, because they represent what's called "overhead supply," or resistance.  Same thing.  I'm going to start with the July 15 gap open at 1.65 to explain.

A gap that is a little higher than the prior day that continues higher into the close is a "gap and go," or breakaway gap, particularly if it's a pattern breakout.  That kind of gap is a good buy.

A gap that is well above the prior day's close that also is the high of the day, or near the high of the day, often is referred to as "a gap to crap," or exhaustion gap.   It gapped up, and crapped out (also known as "exhaustion.")  It didn't have the strength to go any higher. 

DECK did the same thing on Thursday morning.  Gap up a few dollars...but, the open was the high of the day, then it tanked $4.50 before recovering later in the day.  "Gap to crap,"  as least as far as that day's trading was concerned.

closed at 1,46. Not as high as i wanted it to close.. but stil
also very high on volume.. But i don't know the different candle patterns very well yet.. what to think of the one that printed today?

It looks like a hangman.

for a hammer the shaddow has to be twice as long as the body right?

Right.

.. we could call this a hammer then

Hammers only appear at a bottom "hammering out a bottom."  Look at the hammer in February on your chart.  It was preceded by a black candle, then followed by a white candle.  That's a hammer "it hammered out a bottom," and it's part of a 3-day Bullish Morinng Star Pattern..  That's a very bullish pattern when follow-thru to the upside confirms it.

but the black candle doesn't look to nice for me..

You instincts were right.  It wasn't nice because it looks like a hangman (even though the tail wasn't twice as long or more as the real body, which is the open and close).  The effect was the same as that of a true hangman.  It was followed by three days of selling.

Hammers appear only at bottoms.  Hangmen appear only at tops.

It's called a hangman because anyone who bought the open (1.65) or the close (1.46) is left "hanging there" in that trade at a loss when the stock sells off, which it did for three days.  At the low of 1.12 on July 21, anyone who bought the 1.65 open was "hung" with a 32% paper loss; anyone who bought the 1.46 close was "hung" with a 23% paper loss. 

All of those people now represent "overhead supply," or resistance.  Not all of them will sell, of course, but as price approaches the July 15 close of 1.46, many who have been sitting with a paper loss of as much as 23% or more, gladly will sell into the rally for a break even.  "Whew, I got out of this thing without taking a loss." 

Same psychology applies all the way up to the $1.65 high. 

There are a lot of people who got in at the range of 1,40 - 1,50  so these are all long people  ;

Yes, and now you see what I mean.  Some of them are long people who want to get out at a smaller loss (if they paid 1.65) or a break even (if they paid 1.40-1.50), or a small gain (if they paid less than 1.40). 

That's why I said in my first post that this might take some patience, while those who want to sell get out of their postions.   Up and down...backing and filling...consolidating for the next move higher, which hopefully it will do. 

For the stock to rally straight back to 1.65 from here, I think it would take some news.  Something exciting that would cause people who long at higher prices to want to hold the stock.  Otherwise, I would expect rallies to met with some selling, especially low volume, unconvincing rallies that cause people to be impatient and sell.  Not me, Nikao.  I would never sell in that situation.  You know how patient I am! 

Hope that clarifies the difference between a hammer and a hangman.

[kuepper]

Here's my chart... looks like it has decent support, and I like the last few candles...

[nikao]

ADST printed a Doji. After the white hammer of the day before I think we´re about to go up (fast) again.

Yeah, that's looking a little better, isn't it?  IMOS violated its bull flag intraday, but opened and closed (higher) within the bull flag, so that's looking a little better, too.   

There are a lot of people who got in at the range of 1,40 - 1,50  so these are all long people  ;

Unfortunately, that's not a good thing, because they represent what's called "overhead supply," or resistance.  Same thing.  I'm going to start with the July 15 gap open at 1.65 to explain.

A gap that is a little higher than the prior day that continues higher into the close is a "gap and go," or breakaway gap, particularly if it's a pattern breakout.  That kind of gap is a good buy.

A gap that is well above the prior day's close that also is the high of the day, or near the high of the day, often is referred to as "a gap to crap," or exhaustion gap.   It gapped up, and crapped out (also known as "exhaustion.")  It didn't have the strength to go any higher. 

DECK did the same thing on Thursday morning.  Gap up a few dollars...but, the open was the high of the day, then it tanked $4.50 before recovering later in the day.  "Gap to crap,"  as least as far as that day's trading was concerned.

closed at 1,46. Not as high as i wanted it to close.. but stil
also very high on volume.. But i don't know the different candle patterns very well yet.. what to think of the one that printed today?

It looks like a hangman.

for a hammer the shaddow has to be twice as long as the body right?

Right.

.. we could call this a hammer then

Hammers only appear at a bottom "hammering out a bottom."  Look at the hammer in February on your chart.  It was preceded by a black candle, then followed by a white candle.  That's a hammer "it hammered out a bottom," and it's part of a 3-day Bullish Morinng Star Pattern..  That's a very bullish pattern when follow-thru to the upside confirms it.

but the black candle doesn't look to nice for me..

You instincts were right.  It wasn't nice because it looks like a hangman (even though the tail wasn't twice as long or more as the real body, which is the open and close).  The effect was the same as that of a true hangman.  It was followed by three days of selling.

Hammers appear only at bottoms.  Hangmen appear only at tops.

It's called a hangman because anyone who bought the open (1.65) or the close (1.46) is left "hanging there" in that trade at a loss when the stock sells off, which it did for three days.  At the low of 1.12 on July 21, anyone who bought the 1.65 open was "hung" with a 32% paper loss; anyone who bought the 1.46 close was "hung" with a 23% paper loss. 

All of those people now represent "overhead supply," or resistance.  Not all of them will sell, of course, but as price approaches the July 15 close of 1.46, many who have been sitting with a paper loss of as much as 23% or more, gladly will sell into the rally for a break even.  "Whew, I got out of this thing without taking a loss." 

Same psychology applies all the way up to the $1.65 high. 

There are a lot of people who got in at the range of 1,40 - 1,50  so these are all long people  ;

Yes, and now you see what I mean.  Some of them are long people who want to get out at a smaller loss (if they paid 1.65) or a break even (if they paid 1.40-1.50), or a small gain (if they paid less than 1.40). 

That's why I said in my first post that this might take some patience, while those who want to sell get out of their postions.   Up and down...backing and filling...consolidating for the next move higher, which hopefully it will do. 

For the stock to rally straight back to 1.65 from here, I think it would take some news.  Something exciting that would cause people who long at higher prices to want to hold the stock.  Otherwise, I would expect rallies to met with some selling, especially low volume, unconvincing rallies that cause people to be impatient and sell.  Not me, Nikao.  I would never sell in that situation.  You know how patient I am! 

Hope that clarifies the difference between a hammer and a hangman.

thx for the extensive reply and explanation.. It is very clear now what the difference is .. learned a lot on this stock.. hope to exit it with some profits..than it would be the perfect trade hehe.. but even if i have to excit with a loss it was a good trade, because i learned a lot.. and paying some learning money isnt bad.

[Melf Elf]

.. learned a lot on this stock.. hope to exit it with some profits..than it would be the perfect trade hehe..

I hope that you make lots of $$$ on this one, Nikao.

but even if i have to excit with a loss it was a good trade, because i learned a lot.. and paying some learning money isnt bad.

That's the spirit!  I'm sure that anyone who has been at this long enough feels that they've paid for at least a doctoral degree with the mistakes that they've made.   

I'm thinking that we could get a normal A-B-C correction of the rally to 1.65, form a right shoulder of a bigger Inverse H&S pattern, then breakout above 1.65 to something in the 2.50-3.00 range.

Leg A of the correction is a move down.  We already had that, down to 1.12.

Leg B would be a rally back up into the overhead resistance (the green arrows on the chart below).

Leg C would be the final leg down of the correction (red arrows on the charrt below), to re-test the breakout, or to re-test that up trendline on Kuepper's log chart (Applause to Kuepper for using the log chart, and seeing that.  I missed that one) depending on where those are if/when we get down there.

The chart would have a very nice look to it (Inverse H&S).  If that scenario occurs, we can check out things like volume, to see if it was a low volume selloff, which it should be, etc. 

If we rally into resistance early this week, then take out the July 21 low of 1.12, that's likely what we're looking at: an A-B-C correction of the rally.