Hi Annette,
I can't comment on RMBS's fundamentals. I don't follow the company very much.
With today's chart, there are now technical buy signals showing in Williams %R and OBV, with a stochastic crossover appearing imminent:
askresearch.com
That said, IMHO the most important thing to note about RMBS is that it is in a downtrend, and downtrends continue down until a reversal or a basing period begins.
Also, today's candle looks very hesitant to me, despite the technicals. Finally, the intraday chart does not favor taking a long position at this time, and is instead showing sell signals (thanks largely to an afternoon selloff and poor close):
askresearch.com
The last candle suggests a reversal, but this looks weak.
All in all, I personally would not want to be long RMBS, except possibly for a daytrade temporarily (but not now). Like so many others, RMBS formed a topping formation, then sold off, and broke support this week. My guess is that the downtrend will continue, though RMBS could rally a bit up to its descending moving averages first, perhaps as high as 50 or so. The probability of failure and continued downtrend here is high.
But, as always, JMVHO.............
Walkingshadow |
