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Wednesday, April 18, 2012

ZNGA - Still On Track

All hope is not lost, but ZNGA is still not out of the woods.  We got what the 60 minute chart has foretold, and reach the target (see earlier posts).  Let's look at the 5 minute chart:

It was fun watching it almost made a text book 1-2-3 reversal, and almost got a Ross Hook upon breaking point B. The volume characteristics were favorable, too.  Unfortunately, it didn't pan out.   But then it's a bit silly to look at the 5 minute chart for reversal on this strong down trend.  All hope is not lost.  Bottom line: we need a bigger bounce first before any talk of reversal.  The low may or may not have been in.  One negative is that that sell volume in the past few day have been on the heavy side and there is no positive MACD divergence to speak of.   The 60 minute MACD is close to crossing up.  That's why if we get an impulsive bounce then upon retest of the low, we'd be set up for a positive divergence.  We have to wait and see.

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