Hi JTE,
Reid is right, the volume in CYTK is too low to make analysis reasonable. But this much is clear to me: CYTK is in a downtrend. But there has been sharp seeling that was met just recently with supportive volume, indicating that CYTK has found a temporary bottom here. It is likely to go lower, however:
stockcharts.com[w,a]daclyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G
Personally, I rarely trade stocks like this, but if I were going to, I would look to short it as it rallies into resistance. Long positions in a stock like this are exceedingly risky, and not nearly worth the potential reward IMHO. You might be right (read: lucky!) once or twice, but 8 or 9 times out of 10 you'll find yourself deep underwater.
The stock is very weak, and has been getting steadily weaker; you can see this if you plug in relative strength into the technicals, and compare it with the Nasdaq composite for instance.
JOBS shares a lot of similarities with CYTK. That monster gap down is bad, bad news for those holding long positions:
stockcharts.com[w,a]daclyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G
Long positions are much more risky than shorting a stock like this as it rallies into resistance. I agree with Reid that the 20 ema is an excellent place to look for a short entry.
Hope this helps,
T |
