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Registered User
Joined: 12/2/2004
Posts: 1,775
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RNN broke out of a months long lateral base earlier this month on excellent volume and for past two weeks price has pulled back as it formed a nice flag or pennant on lowering volume. Besides those excellent technicals, other technicals also look excellent wth price cleanly taking out major moving averages coupled with good MS and BOP. Note the multi day volume burst early this month; by far highest volume in stock's history. I think a decent chance it will soon test the May 09 resistance of 2 , and with sudden character change in its volume would not be surprised to see even higher prices eventually. Not a big fan of playing $1 stocks, but the setup looks too good to ignore imo.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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Since post RNN has formed more of a pennant and imo is now in an even better setup...mainly because volume continues to be relatively low vs. the earlier buildup to highs, and now the daily price ranges are tighter.
Main reason I'm updating is because I noticed that first 30 minutes of trading this morning was highest for that time period in past 9 or 10 days and it was mostly green volume looking at the 5 minute bars. Price this morning though is bumping up against 12 day resistance of 1.30. If price were to close above that level then maybe a good time to start a partial position or an addition. These little bios can be so very volatile that you almost have to start at least a partial position in anticipation. But sword cuts both ways, almost also have to immediately set a hard stop right after buy.
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Registered User
Joined: 2/21/2007
Posts: 797
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fpetry: that may meet Mr. Bulkowski's Flag pattern, His #1 best pattern
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (johnlc) fpetry: that may meet Mr. Bulkowski's Flag pattern, His #1 best pattern
Hi John. Someone else brought up the Bulkowski high flag other day on their stock and so I went to the site and brushed up on just what exactly Bulkowski's criteria are for his top rated pattern. RNN apparently does not qualify to the letter for that pattern for a couple reasons. To start it did go up on breakout 90% plus, but he likes the high flag's pole to form a more sloping angle over longer period. And the flag pullback exceeded his 36% limit I believe...about 50% in RNN's case. As for his regular non high flag the pole can be quick and vertical but does not carry same top rating as his high flag. I'd like to think RNN falls in between. The high tight flag also happens to be one of IBD William O'Neil's favorite patterns, and world's individual all time trading champ (forgot name) also loves it. Seems every expert on the pattern has a slightly different definition on specifics of the pattern, so I like to mix up all and note the pertinent similarities. In closing, the pattern is not really legit per Bulkowski until price closes above high's in flag, or 1.50+ for RNN, same for O'Neil. BTW, the typical flag is also almost identical to a handle in a O'Neil cup with handle pattern. Yesterday's action in RNN encouraging, but need to have some good follow through quickly or pattern could fall apart fast.
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Registered User
Joined: 4/10/2006
Posts: 954
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I got bumped out of RNN. looks like its going to recover though. -good luck
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (wwrightjuly4) I got bumped out of RNN. looks like its going to recover though. -good luck
Smart minds think alike, I got stopped out too:) Although price recovered at close yesterday I think we did right thing. MoneyStream hanging in there but don't like how BOP has taken dramatic turn to downside. But if price takes out 1.50 on volume then I may reconsider, still watching it. Good luck to you.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (fpetry) But if price takes out 1.50 on volume then I may reconsider, still watching it.
And price has indeed taken out 1.50 on high volume. A terrific little 4 day pennant has formed, showing ideal traits of tightening daily ranges with lowering volume. Nearest resistance at 1.80 and 2.00.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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FWIW, Harry Boxer this morning mentioned RNN as a chart to watch on the free part of his site. Boxer btw has been a Worden seminar guest twice in recent weeks. One is still in archive I think, and imo a must to view for those who like his style.
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Registered User
Joined: 4/10/2006
Posts: 954
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Nice one. thanks fpetry. I had re-entered and what a ride.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (wwrightjuly4) Nice one. thanks fpetry. I had re-entered and what a ride.
Glad you're still in wwright, nice ride indeed. One of my best lately despite buying higher second time around. Originally stopped out at 1.29 for tiny gain on 3/5. I sold half the new position Friday at 2.55, wish I hadn't now, but I'm still in, with looser stop moved up. Might see selling on news tomorrow, hope it will but not in excess to extent it triggers stop, so I can maybe add back. This one has mucho momentum but needs a rest.
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