COT – Knife Catch long
Sep 28th, 2007 by Trader-8
long 8.01
COT has been in a death spiral. last week the volume was very high and this week the volume also came in on a smaller Hammer. COT has R right above at 8.07. support is at 7.75 and then at 7.39. ideally, the high volume support pivot at 7.39 would be tested on lighter with a close back above that level. ill add just above 7.75 on a PB. 7.39 support is pretty far away on a percentage basis & ill have to decide what to do if my stop is hit. if COT gets moving, it could get to $12 on a bounce. check the daily, volume has been coimng into COT at these levels.
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See comments on NTRI. I agree that 7.39 gets tested again before 12 (make that 10) will be seen
I see the difference in the volume at these levels, but it also scares me that whomever is buying all these shares will need to dump them. It could be end of Q window-dressing as well (dumping the shares, so they aren’t on the books).
But sometimes stocks get too cheap to short any longer ans shorts are forced to cover and “value” investors are moving in at that point. So is it accumulation or more distribution into short covering with minimu price movement in the last two days? Time will tell.
not even a dead-cat bounce. out -.02