Tuesday, February 2, 2016

[GLNCY] update

Oil should be bottoming soon and ARP, VNR, GLNCY and the like will be benefitting big time.  In the GLNCY backlink I was looking for a final bottoming wave and then a breakout of the upper rail of the down sloping channel.

As we can see from the update below, the bottom was a bit lower than expected because the center tine of Andrew's pitchfork did not provide the expected support.  So instead of an expected bottom in the $2.15 range, GLNCY saw a lower low in the $1.95 range. 

After that, the chart quickly rebounded to $2.65 and in doing so it broke out the top rail of the channel and it did so with a definitive gap.

I see the current action as likely being a gap fill retracement which is currently sitting at support but which could in fact go all the way back down and back test the top rail from above.

Bottom line is that I model this pullback as being a buying opportunity.  If the red line cannot hold then I would look to buy again at a back test of the top rail.  Stops can be set to 2.28 for now.

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