The stock has not yet shown signs of any recovery as it hasn’t stopped making new lows. Why I am concentrating more on this stock is because it is an exceptional stock compared to any other stock.
Its long term trend is temporarily changed to down trend. Presently it if forming lower lows and lower highs indicating the pain is not yet over.
Just take a look at this chart. It is clear that it is facing pressure from a distressed seller. The high volumes coupled with its ability to make lower highs and lower lows prove that point.
So I expect it to break down further in the coming days/weeks, if not on Monday. We can clearly see that it had traded for a long time in the part (April) around 400 and that served the purpose of being a stop for the last three days as it is still hovering around that level.
In the same way I expect it to retrace back to 500 after many weeks as it traded around that value for many days in June and July and it had been resistance in May. That implies clearly that it can become a resistance in the future also.
My next bet on this stock is to enter after it makes a quick recovery from the lowest low and consolidates for few days. I will then post here at what price to enter and exit.