[ Chat and SNRS Technical Observations ]
Sylvester, Skane, Cubby, Robert, and others:
Thank you very much for the kind support you've given over this little episode we recently had. I hope this is all behind me; now we can look ahead to what's next for SNRS.
First, a note to Sylvester:
"As you know, my wife is my in house expert, she reviewed the article and says "keep the stock."
I think those are wise words from your wife. Have you considered having her make a guest appearance on SI? I think having her perspective would have a positive effect on the perception of the procedure.
Wise as they are though, they come at a time when SNRS' technical strength has experienced cautionary developments. With the close on Friday at 7.625, the price now sits below the 50 day moving average, one of the most followed moving averages in the technical world.
Larry Williams, the renowned trader and technical analyst, seems to put much weight on the price in relation to this key moving average. In fact, the proprietary Larry Williams Expert Indicator that is included in the Omega Research package of TA software depends heavily on this MA when giving bullish and bearish signals. With Friday's close, the trend based on the 50 day average has turned bearish. For verification of the importance of this MA, please refer to "fishin2's" post, reply #1036.
It has been my experience that the more "technically-tradable" issues will heed the buy/sell discipline involved with this moving average. Momentum issues in particular seem to abide by this very well. Be prepared to experience possible weakness to as low as $7.00 in the near term if buying support does not materialize.
To add to this bearishness, a key intermediate term momentum indicator I follow has peaked, the modified RSI indicator I follow has fallen below the critical 50-threshhold, and the stock is facing further distribution (i.e. that LA clinic Sylvester mentioned is perhaps a contributing factor).
At $7.00, it looks like a case of triple support: the trend line support, the late March/early April support, and the Bottom Channel support.
But there is a positive note here: the negligible volume that has brought the price down to these levels makes the significance of the weakness suspect. In addition, the bottom Bollinger Band is directly below the closing price, at $7.50, which is theoretically supposed to provide support at these levels.
We'll see which scenario develops in the near term.
Regards,
Rainier |
