A deeper look at JSDA and why technical analysis is important

Earlier today I posted a daily chart for JSDA and noted the resistance levels that were critical for the stock to overcome in order for JSDA to be showing signs that it is reversing the down trend.

The following chart is the JSDA intraday chart from today (5 minute interval). Three attempts were made by the buyers to bring the price up but each time the sellers would chop them down. And each try after that the buying intensity was dropping.

Technical analysis is the scientific study of supply and demand (the emotions of the buyers and sellers), and it reveals to us when the right time to enter a trade is and when it is not the right time. In the case of JSDA today having a nice rally it could attract the unsuspecting buyer thinking they were buying a bargain as the stock was on a new rally. But the chart tells a different story. The charts today show it failed to break the down trend resistance levels and a closer look at the intraday chart shows the intensity of the buying dropped off as it failed to break resistance. The charts tell the story. We wait for a break over resistance for confidence the trend is reversing.