Pompsander a very good question, and following the old mantra, when the TA and the FA do not jive, believe the TA. Here is what I read in this (and that may change if we breach $95). A lot of people have watched this stock come from the depth of the low 50' to 117 in a very short time, and at every point, told themselves, if it just get back a little more to that and that price, I'll buy some. Similarly, a full squadron of shorts have been shorting this stock from the mid 70' and below, and once $95 broke, they contributed some to the fire. But a lot of these shorts are still going to bed every night kneel and pray: "Oh god, if it just get to $95 (or whatever number each chooses), I promise I'll cover and never touch this one again" (the smarter one even do a double up, cover their shorts and go long), that is how support and resistance level gets created all the time, and nothing is new here. So, despite the somewhat less than promising FUD currently going around, the stock always bounces back from that support area.
If it breaks, it means that this source of support has been exhausted, and then look below. But frankly, I think that this should hold, my reasoning for this opinion is the same crescendo I have been mentioning before. From here on, we should hear a crescendo of news releases discussing products that are using RMBS' technology, even if the actual numbers do not reach the levels expected by our resident bulls, the background noise of this crescendo will serve as support in spite some potential delays in the rate at which RMBS will be the standard bearer for all memory systems. The end results will be the same, and the fear of missing the boat by both bulls and bears will create the buying power you so described so accurately.
Good luck
Zeev |
