Note the Sept. high to the April high. Trades are under a sinking 50dma. 200dma is providing tenuous support yet a catalyst to buoy up the stock is absent. The stock will fall of its own weight seeking more definitive support, down she goes.
Retail sales were inline... sell on the news. Longs need the stock to stay above the middle Bollinger band and the 50dma. The stock seeks support. Short interest grew in May. The share price trend is sideways. Longs need a catalyst. Longs are on the wrong side of the trade. Chart lows are at 4.90 and 5.90, so the share price is sporting a lot of premium over the base case. The company has to make a profit. My target to cover is 7.30ish the inverse of the golden mean retrace of the Dec. to April rally where you also see pretty good chart support. This peckerwood is gonna have to grow up to become an investment.
Noting the Sept. high and Dec. low, subsequently the stock stalled at a retrace only to the inverse of the golden mean. This was followed by a descending upper trendline. So what is the technical theme? Answer, the stock is looking for support. Longs are seduced by the rising lower trendline off the Dec. low. Short is the current best trade.
The stock is showing a doji at 8.60 today after a lower high following the April high. The stock is an investment dog. If the shorts are greedy it balances anxious longs. The stock is a trader unless one is 20 and can wait 5 years and take the risk the 5 years offers.
Check the trend in stockholder equity. The stock is weak. Until the company turns a profit the stock is a trader at best, not an investment of any repute. We trade this one long and short in the range, that's all it's worth.
Candle tri-tips. Inverted head and shoulder bottom reversal, cleared the neckline on volume to confirm, sellers are thinned way down, might as well say sellers are gone. Shorts are nervous/covering, the ones who know what they're doing anyway. Bias is bullish.