Friday, April 20, 2007

JSDA: Yet Another Failed Rally

JSDA is performing similar to yesterday. In the case of today, the stock gapped through resistance at the $27.00 level, attempted to rally through $29.00, and was met with resistance. Finally, after five 5-minute candle sticks JSDA violated the gap up demonstrating a failed rally.

This is important because it places additional longs in instantly losing positions adding to the overhead supply. I believe typical Friday's action will add to the selling pressure as day traders close losing positions heading into the weekend. For now I will remain short.

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