Hi Reid,
At first glance, TASR might look attractive. It is getting there, but I don't think it is quite there yet. Look at that same 2 year chart using weekly candles. Those last two candles are pretty dramatic.
139.142.147.218
This tells me TASR is dead money for a long time. That said, TASR is very close to long-term chart support levels, which roughly coincides with the lower BB rail. Will it reverse there? I would feel much more confident of that if the volume were much greater. So far, on the weekly chart, I don't see the kind of volume that would be consistent with a reversal. Of course, I guess you have to take into consideration the fact that the current candle represents just two days' volume so far.
I think I'd be looking for a reversal at about $13.00 or just below that. Then, a long term short position would be attractive if TASR can rally into resistance, or even better, if chart support at $13 is breached. In that event, TASR is probably dead money for at least a year, maybe even several years.
Incidentally, TASR is a very heavily shorted stock that made it onto that Nasdaq SHO list. Didn't seem to help much in this case.
T |
