Thursday, June 23, 2011


I am watching this stock for 2 reasons:
1) Bull View - The stock has had a 4 day buying run... the most this year for the stock. Stochastics look strong (shooting above 50). The financially this stock has made money for the past 4 qtrs with good cash flow and very low debt. They have recently started turning a profit. 

2) Bear View - The $4.20 level is a big prior support level. This could act as a big resistance level as all the people who bought above 4.20 are going to want their money back. 

I think the price action will pull back around this 4.20 level. If the bull view prevails it will pull back slightly and launch past the 4.20 level. If this is just a short squeeze the stock could pullback and fall b/c of the overhead resistance.

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