E, you put me in a tough position. My training has taught me to avoid stocks that are exhibiting weakness, for weakness can often breed weakness. My previous views were only made for the shorter term characteristics of the issue, and hence are intended only as a short term navigation tool.
While the short term is slightly weak, the intermediate term characteristics of SNRS are by many means bullish. That bullishness, however, seems to have deteriorated somewhat, and traders are getting cautious enough such that they are taking profits upon any sign of near term upside strength.
I do not blame them.
Key intermediate term momentum indicators have peaked as of the past two trading days; the main upward trend has been violated, and the recent show of strength to $8.50 was quickly snuffed out, bringing us again to the 50 day moving average. The price formation is that of a Descending Triangle, with the expected opposite characteristics of the Bullish Ascending Triangle that I often refer to on other threads. If the stock does not immediately show upward strength in the near term, I think $7.50 will not be beyond the realm of possibility.
But I still have not answered your question.
Intermediate term, this issue looks bullish, though to a decreasing extent as days pass. The short term, however, continues to be bearish. If I were to look to acquire, I would do it on the way up, after the short term bearishness has been sufficiently negated, and the intermediate term uptrend has been reconfirmed. This ensures a minimum of portfolio drawdown. While always keeping in mind that our goal is to maximize profits, it is often forgotten that we should also always seek to minimize loss. We achieve both by subscribing to the above technique.
Trade with the trend, because the trend is your friend.
Regards,
Rainier |
