Why I like RRI here (more than EP):
stockcharts.com
For several days RRI was resting and volume was settling a lot lower. I was hoping to be able to snag more shares at the sub $1.80 range; if the IPP news hadn't come out and the market had gone to sleep, maybe it would have happened.
That may still happen next week or beyond, but it's just as likely that this $2.40-2.75 range becomes a major consolidation area/launching pad. Its fundamental story has been well reported, a p/e of less than 2, and refinancing news (good news) shouldn't be too far away.
Technically, if this stock bases and begins to climb, there's resistance above at $3.20 and $6.40 and $7.25. If this were an airplane, you'd say pretty clear skies if we can just stay above the low cloud cover. It's trading above the 50 dma now and aiming at the 200 dma, which on current trajectory it could be crossing right at about the $5 level, which would be an additional boost.
Full disclosure, I own this stock, and an $8 price tag would be a 300% profit for me.
I also recognize that this one day, if volume doesn't show up, could be simply that: one day.
Good luck to all,
Kb |
