The chart is looking promising for longs as it pushes at resistance of the April low. Action above resistance confirms the July low reversal. Our desk is poised to add long shares as the stock closes above .65
Chart showed a doji on the 8th followed by higher lows each day,not bad. We want to see the stock get to and past the tri-tip and tweezer at about .65, it looks doable, yet we'll stand by until it does. We'll add to a long position on closes above .65.
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.