We call this a Double-Top.
No explanation needed.
About as self-explanatory as financial mumbo jumbo comes, in fact.
What it REALLY means in this case, however, is that the Hot Tipster who got us to start buying Open Energy (OEGY) at 72 cents a share, right at the second, or double, top on this chart should boil in the hot water he's in. Our $7,500 Trading Account is now stuck with 10,000 shares an average cost of 66 cents.
I mean, I listened to what he said. Then checked the company out. Did my research. I even evaluated E-TRADE's excellent charts, and then asked a question. A query about Double-Tops. On no, Hot Tipster said.
I called the bastard last night to complain. "I'm getting killed, Ace. What were you THINKing? It was right there in the charts we were going to get killed."
"Hang on, Austin. I swear OEGY is going to work. We just have to give it more time. And I don't believe in charts."
"Yeah? Well, check out the chart above our dialogue, dude. It's the shape of your head. Two pointy-topped brains, and neither one of them work. OEGY closed at 50 cents today. My blogging account is down over $1,600. I look like a fool instead of the wise, smart investor I am."
Hot Tipster #1 cackles like a duck when he laughs. It's the last thing I hear before the dial tone.
Oh, well. Like Tony Soprano said all night at his mother's funeral, "Whaddaya gonna do?" We're buried with this one. Invested in real estate. I'd rather hang on and hope, not sell out and take this hit.
It's a gamble. As another Hot Tipster likes to say about penny stocks (less than $2 in my book), OEGY is awfully close to zero.
But I feel like gambling on this one. At least for now, it's more fun than giving up on OEGY.