I bought this stock for various reasons. First the stock has seen pressure since reaching its recent high of $18.72 on April 23rd. Last week it got close to touching its 52 week low of $9.30. This was a point of buying interest for me as I believe the stock was oversold and is due for another run in the right direction. The stock was selling off and riding along the bottom side of the bollinger band, before recently trading away from the band and setting up for a reversal the other direction. As you can also see with the RSI, the stock was oversold when looking at the daily chart, which is another signal that I like to use when evaluating trades. I am a big fan of bullish/bearish divergence, and even though $SLCA is not showing true bullish divergence, the RSI has been steadily moving higher while the price moved back toward the lows (see the dark green line at the bottom).
The last couple days, price action has moved the stock higher, but today was met with slight resistance at the 21 day MA. To be comfortable with this trade, I would like to see the price move through this MA as well as make a run at the top side of the BB. I will then look for a pull back before it sets up for a run toward the next MA's. I do not feel there is much downside risk, until the stock trades lower than the previous 52 week low, at which my stop will be placed below. Overall, this is purely a technical trade, and for short term potential. This should be an exciting stock to follow and once we get further into the trade I will re-evaluate with a fresh perspective.
We also need to close the gap from May 23rd.
This trade could go horribly wrong, and the stock could sink. But for now I am playing this one from the long side. We shall see how this plays out.
Cheers,
Les
Everything here is purely my opinion, and in no way advice or recommendations on making trades. I may or may not hold positions in the instruments I analyze.
SLCA
The last couple days, price action has moved the stock higher, but today was met with slight resistance at the 21 day MA. To be comfortable with this trade, I would like to see the price move through this MA as well as make a run at the top side of the BB. I will then look for a pull back before it sets up for a run toward the next MA's. I do not feel there is much downside risk, until the stock trades lower than the previous 52 week low, at which my stop will be placed below. Overall, this is purely a technical trade, and for short term potential. This should be an exciting stock to follow and once we get further into the trade I will re-evaluate with a fresh perspective.
We also need to close the gap from May 23rd.
This trade could go horribly wrong, and the stock could sink. But for now I am playing this one from the long side. We shall see how this plays out.
Cheers,
Les
Everything here is purely my opinion, and in no way advice or recommendations on making trades. I may or may not hold positions in the instruments I analyze.
SLCA
Trade closed: stop reached:
Was stopped out on monday 7/29 at $10.40. ended up with small gains, but for me this trade was still a success. I closed the trade with profits and my stop did what it was supposed to. Unfortunately, the day after I was stopped out, the stock rallied substantially off of earnings news. It is still surging today. Shoot! It would be nice to still hold a position in this one lol, but hey, thats what trading is about! Anyways, this idea is closed, thanks for viewing!
Thx
Les
Thx
Les