My apologies to Kevin for my tardiness in posting Knight Capital Group’s chart. He requested it on October 27th after its 4.5% drop. It looked like it was going to be able to bounce off of the 50-day moving average but today we know that was a head-fake. Despite breaking the 50 DMA I don’t think all is lost for the NITE bulls just yet…
NITE’s approaching what appears to be pretty solid support near $17.50. I think that area provides a good risk:reward assuming a stop loss just under $17. But if I were buying it I’d wait for a reversal candle before taking the plunge. I could see it forming a long hammer (not unlike the one it made on October 11th) which could extend all the under 17 before bouncing.
