BAY : Hourly chart : Dead cat bounce wont go far
September 25, 2011 Leave a comment
BAY has strong initial resistance at 22.30, then again at 22.45 and very strongly at 22.60. Entry at 21.8 or a spread or two higher at most.
Lower support at 21, 20.50 and indeed 19.90-20.00 will be hit shortly, so for now all we look for is 4-6 spreads then we’re out.
We think the stock may well come down closer to the 17-18 range, and like all of the banks the selling is not done yet we caution.