Philip,
The pickup in volume is an encouraging sign, but it comes with only a few trades. Today's activity the stock rose to $2 31/32, up 5/32 on only 1,800 shares by 10:33 AM EDT, that's 5.26% rise on the market cap. This is not so good as it represents the wide spreads taken by the market maker (MM), rather than price appreciation generated by stock purchases. At this writing (3:30 PM EDT) the price is still $2 31/32 @1,800 shares.
However the price was achieved, a short buy signal was given. But this needs to be confirmed by other TA indicators. So stock purchases should be made only after a buy confirmation is given. The danger is that if the stock is purchased at this time, and the buy signal turns out to be premature, the price could languish in this range for an unacceptable period of time.
One other factor for consideration is the Jacks Hot Stocks buy advisiories. It's not so much what these advisories have done for the stock price recently, but what thet have failed to do.
Current upside resistance is $3.125 and primary support at $2.375.
Harry |
