Rsys is probably not an appropriate candidate for technical analysis. This is, and has been since its precipitous drop, a special situation which by definition defies analysis. It's fall was caused by unanticipated information and it remains in its current status as a result of that same information, except to the extent that the information has been negated by the P/W audit.
My view of this status is that it was a grave overreaction, caused by fear and ignorance of the significance of the lawsuit and potential SEC oversight. However, as perception moves the market, so too does it become the reality within which rsys must survive. Long before we hear anything consequential (either way) about the lawsuit, and probably without any word from the SEC (which neither we nor rsys may ever hear from again), other information will come to exist that will impact on this stock. Next quarter's earnings, for example. Then, some day, we'll all be asking ourselves, what happened to that lawsuit and SEC thing that was sooo important that this stock fell precipitously, and nobody will be able to answer. And nobody will really care. |
