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1 point   posted on 09/01/08
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-52.68%
 risk: conservative

Great Risk/Reward scenario on BSRC


Despite the marginal new lows in the stock over the past several weeks, BSRC is giving several latent signs of an imminent turnaround. This is evidenced by the marginal new lows not being confirmed with new lows in the MACD. At worst, the MACD is trading sideways. However, one could actually argue that the MACD is making higher lows and thus suggesting a bullish divergence. While difficult to pin-point the exact time of a turn around when trading off such a divergence, it is important to begin to build a position sooner rather than later, as this turn around will be sharp and sudden. Given the fact that the stock is also entering oversold conditions (as measured by the stochastics) and experienced a key reversal on Friday where the stock traded below Thursday's close, but actually closed unchnaged (on heavy volume), the weight off evidence suggests begining to build a long position as early as Tuesday.

  Related to:  
BSRC BioSolar Inc.


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