Past breakout identified and potential long term run

29 ธ.ค. 2017

GALT has shown an ascending pattern over the last few days and it is soaring over this past trading day (12/29/2017). It broke yesterday’s resistance level and ran up to a high of 3.84 before it started selling off. Moreover, the stock rode the 13EMA for the past few days. It re-tested the 13EMA earlier today before bouncing back up. I re-evaluated a potential resistance line at $4 as the next dollar up from the bought price is usually a strong psychological resistance level . I can see traders taking their profits here but at the same time I would not sell if you are holding this stock until it re-tests the 13EMA and breaks down through it. Furthermore, if you are thinking of buying into it, don’t buy into it until the stock breaks through the $4 resistance line. I see this happening within the next few days but it all depends on tomorrow's open. If it opens higher than tonight’s close, then I can see the resistance line being broken within two trading days. If it opens below then this might be a sign of a decline as the breakout could have been said to occur where the circle is marked. If you are still looking to buy into the stock, I would recommend waiting until the stock either re-tests the 13EMA or begins trending in a bearish pattern.