<<the daily trading range is tightening up and the volume is dropping>>
Well, I must take issue with this statement (but not with your rosy forecast).
If the volume is dropping (which it definitely is, and has been for a few weeks now), this fortunately and unfortunately increases the volatility. Note on Monday and Tuesday, the stock dropped $4 on Monday on light volume and hit $22 on Tuesday on light volume. This represents huge volatility.
IMO, there will continue to be wide price swings on this stock. As long as the market holds up, this is a VERY big positive. Each dip represents a buying opportunity.
I will go out on a limb and say, barring a major downside market move, that you will not see $25 on this stock again in the next year. The base has been established. However, I predict you will see more intraday volatility going forward, not less. However, at the end of the day, the stock will be up.
Cheers to all of us. God bless us, one and all. |
