Friday, June 08, 2012 12:36:36 PM
$SIOR bounce support levels
I've had my eye on $SIOR for a while now and have definitely been watching the chart action for entry.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73107166&txt2find=sior
However, given the recent revelations about management I am no longer interested in this as a long term play but rather as a bounce play setup.
The first thing you have to realize is that there are 2 very big bearish chart patterns. First is the bear flag. A bear flag is when there is a deep drop in the price of a stock, and subsequent price action that trades inside of that drop. The second bearish pattern is a wedge formation. As you all can plainly see the price has had a rock solid resistance level at 2 cents and a 45 degree line of support which had a very deep pierce today.
Those 2 patterns alone point to downside especially if the price can not close back inside of the wedge support line.
I am not advocating a short on this position as of now, further pattern development would be required. However, I personally like to play bounces of strong support levels for quick flips.
The first area of support should be the 1.2 cent level which is a prior pivot which coincides with the 200 day moving average. Just below it is 1 cent, and then my original price target of .008 cents.
I personally will be playing anything above .008 very lightly because you never know what other bad news will come out, but at .008 I would go full position size for a bounce and definitely .004 if it gets there. I've had quite a bit of success this year on penny stock pullback plays, so that's just how I'm looking at this one. Good luck!
I've had my eye on $SIOR for a while now and have definitely been watching the chart action for entry.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73107166&txt2find=sior
However, given the recent revelations about management I am no longer interested in this as a long term play but rather as a bounce play setup.
The first thing you have to realize is that there are 2 very big bearish chart patterns. First is the bear flag. A bear flag is when there is a deep drop in the price of a stock, and subsequent price action that trades inside of that drop. The second bearish pattern is a wedge formation. As you all can plainly see the price has had a rock solid resistance level at 2 cents and a 45 degree line of support which had a very deep pierce today.
Those 2 patterns alone point to downside especially if the price can not close back inside of the wedge support line.
I am not advocating a short on this position as of now, further pattern development would be required. However, I personally like to play bounces of strong support levels for quick flips.
The first area of support should be the 1.2 cent level which is a prior pivot which coincides with the 200 day moving average. Just below it is 1 cent, and then my original price target of .008 cents.
I personally will be playing anything above .008 very lightly because you never know what other bad news will come out, but at .008 I would go full position size for a bounce and definitely .004 if it gets there. I've had quite a bit of success this year on penny stock pullback plays, so that's just how I'm looking at this one. Good luck!
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