Got a request to look at the chart on SRAM, an OTC stock.
First of all, here's the long-term chart that shows the trend:
Weekly chart shows SRAM to be in the middle of a trading range that began almost a year ago, and ranges from pretty solid chart support at $0.50 to about $0.75 or so (with a few brief spikes above that to about $0.90):
139.142.147.218
This is really the tail end of a downtrend that began in March 2004:
stockcharts.com[h,a]daclyyay[de][pb50!b200!f][vc60][iLg!Lp14,3,3]&pref=G
Note that the moving averages have leveled off and equilibrated, and SRAM is trading right about on them. So SRAM will move now. But which way?
Well, SRAM is overbought, and has just been turned away from the upper rail of the BB and the 200 ema:
139.142.147.218
It is just above the middle of the BBs now (an area of relative support, and there are technical sell signals in Williams and OBV, with further confirmation in the stochastics.
SRAM will move down to test that support, at about $0.55. That is also recent chart support. If that doesn't hold, then SRAM will move down to test pretty solid support at $0.50.
That would be a good time to look for a long entry, IMHO, particularly if SRAM dips a bit below to touch the lower BB rail (which will rise somewhat between now and then).
So: very short term (next several days), SRAM looks headed down. Over the next week or two, SRAM should move down to test solid support, which will very likely hold, and would be a good place for a long entry.
T |
