Closer look at HOT retracements & support - resistance reversals
That last few reversals we saw were the .5 reversal and the .618 reversal. During both of these reversals, HOT bounced twice off its support, rallying to its resistance, before laddering down to its test its support for a third time. After failing the to bounce off the support level a third time, HOT saw a steep race down to the next retracement level. Right now as HOT trades in the .786-.618 channel, be wary if HOT fails to break through the .618 level after a second rally, as it could ladder down to possibly test its .786 support. If it fails that test, it' could be a steep drop down to its next support level. As mentioned in my other posts, this is not financial advice, just my speculative opinion on trends I've been seeing.
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