BTN Ballantyne Strong's Technical Action Reflective Of Tricky And Choppy Markets

by Olivier on August 11, 2010

Ballantyne Strong – BTN, one of my pilot positions a few weeks back is literally chopping traders to death. The technical set-up was extremely bullish and the stock initially broke out to the upside on huge volume after earnings were announced. The stock has given back all of the initial surge and then some. The stock could still stabilize and move up at some later point in time. For now the stock has two major problems it has to contend with:

  • Price fell ‘back into the pattern’. Technically speaking that’s bearish action.
  • Traders who bought the break out are now possibly trapped in what looks like a false break out or bull trap. The stock has inflicted psychological damage to longs. Technically speaking this will increase selling pressure once the stock starts to claw its way back up.

BTN - Ballantyne Strong Bull Trap Technical Analysis Price Chart Triangle Pattern

Up-to-date BTN – Ballantyne Strong Chart on my public list.

The lesson here is simple: The biggest portion of a stock’s movement is closely tied to the market’s overall performance. BTN – Ballantyne Strong’s choppy action should come as no surprise. It is simply reflecting what the market is doing.

A loss never bothers me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does damage to the pocketbook and to the soul. – Jesse Livermore

My public list with all my charts can be viewed here:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469

Buenas noches!

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