Yesterday, BPC broke above its range's resistance at 3.75. Today, however, it went back below this resistance to close the day at 3.70. The way I see it, if BPC is unable to hold onto its gains, it can potentially go back down its to range's support at 3.45. Notice too that since February, BPC is respecting its upward trading channel. If it fails to continue higher in the next couple of days (to potentially follow a steeper rate of ascent), BPC may fall back near its support once again. Range and (red) channel target points to 4.05. Be mindful of BPC's resistance at 4 to 4.20. BPC has not touched that area since November of last year, at the least. What's good about BPC the past few weeks is that after a long time, it finally got some volume.
2 comments:
Pretty good analysis on BPC, thanks for giving the pros and cons . I do have some of this and might hold on for a couple more weeks.
Let's say if you were holding BPC and if things turn out bad , at the current share price of 3.75 how many flucs down will be your cut-loss exit?
Cheers!
Chambeng
Hey Chambeng! If I had BPC at around 3.75, my cut loss would be around 3.6 to 3.65. That's the support of BPC's upper range. Break that and I can already see 3.45 coming. But if I had a lower cost, I think I can hold this one, knowing BPC has a choppy "uptrend". But since the entry price is at the resistance at 3.75, that indicates a short-term trade, hence the tighter stop loss.
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