Dow made a huge run of 178pts back to resistance at break-even point of pre-quake level yesterday. A push towards to the blue spot would see many short-sellers covering their positions. This would probably trigger a spike up of the Dow Jones index.
One point to note was that the financial sector failed to rally and thus did not follow-through with this 178pts gain. We will do an analysis of the financial sector on this page as well.
One point to note was that the financial sector failed to rally and thus did not follow-through with this 178pts gain. We will do an analysis of the financial sector on this page as well.
Citigroup (C) made an announcement that the company would do a 10-1 reverse split of their shares. The market react badly to the news as a reverse split of the shares would screw the value of current shareholders. A reverse split is often seen as a cosmetic enhancements made to the value of the company without any changes to the market cap of the company. At its current closing price of $4.43, Citi's stock price after its 10-1 reverse split would be at $44.30. Citi dropped on huge volume after initially testing the Kijun line of the Ichimoko Clouds system. Citi would be a good buy for me after its share price stablises after its reverse split.
Bank of America (BAC) and Goldman Sachs (GS) both are currently in the midst of forming a bearish triangle and in range trading mode. If the stock price made a move up or down the triangle on huge volume hitting either the blue or red circle level, then it would be the signal for traders to make a move towards the intended direction of teh breakout.
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