First test will be the 250 area, if we breach that, the stock will fall rapidly 200, 190 or so... 250 area is critical to the psychology surrounding SDLI. 250 is around where the 25 day line is. The 25 day line tracks the stock very closely, once the stock goes trough the 25 day line and fails to recover, it has moved to the 50 day line. There are two reasons why I feel the drop would happen rapidly, current market conditions, (there is still a lot of worry built into the market), and more importantly, the level and speed at which SDLU reached the high. SDLI moved 150 points in a months time, I call that hot money to say the least.
All the above is JMHO, and of course is not set in stone. News could come at anytime, and change the current picture.
I thought Friday action was weak, and we could be in the process of starting the right shoulder of an head and shoulder top.
Greg |
