SRS an interesting play moving forward. The longer term weekly chart is showing a nice inverted H&S look that wil target the 30 level. This daily chart highlights a non-typical inverted H&S, non-typical since usually a wild spike does not sit in the middle of the pattern but an inverted H&S projection can be made none-the-less and that projection, with a head at 13 and neck at 21, targets the 29-30 area as well.
Note the green circles that indicate a need for higher highs in the future. See how the red circles were printing lower numbers for RSI and money flow, demanding lower prices, which were achieved with the low in late August satisfying this downside demand, hence the downside appears to be resolved with the 13 base.
The question remaining now is where to enter for a possible long? See how the indicators are lining up with positive divergence, the short green lines? But, positive divergence will not exist until price is lower with the indicators in this positive profile. Thus, a move towards 14, with all the positive divergence remaining in place, is shaping up to be a potential long entry that may begin the jouney to the neck line at 21 and ultimately 30.
Of course, if SRS plans on moving up up and away for the rest of the year and well into 2012, that means we will see further carnage in the housing sector. Perhaps the robo-signing problems will explode the sector into turmoil. In a deflationary environment, housing prices can plummet, and few will have the money to buy, and those that do will not since they feel the prices will become even cheaper (the definition of a deflationary spiral). The final chapter is not written in real estate yet and probalbly will not be written until well into 2012.
For SRS chart use search box above for keystone speculator or view at stockcharts public charts list under keystone speculator.