This stock is definitely in a period of consolidation and in a very tight range, which suggests that a big directional move is imminent. However, it has formed an unmistakable bottom wedge, trading below both major moving averages, which I do believe will break to the downside. Resistance is $13.19 and support is $11.91 a strong volume move above or below those thresholds will be very rewarding if you are on the right side of this.
This would present an excellent straddle opportunity. Just the same. If you are long, it would not hurt to purchase put protection.
Because of the declining money flows, somewhat slightly overbought indicators and increase in negative volume, I have decided to open a long put position for the March $12.50 strike.
I may consider that straddle after further analysis.
As always, one should do their own diligence when deciding on an investment. As I know nothing about the fundamentals of this company, I cannot comment, but the market has clearly punished this stock for some reason and the market now agrees with the valuation until the next change in fundamentals.
How can you read a chart when the stock has never been there? It looks way over sold to me and could bounce to $8. But I am not a chart reader. Please explain your theory because all I see is panic selling and short manipulation. Thanks