Yesterday we had huge volume exhaustion followed by a hammer today (still a hammer with dark body): not too bad odds IF price shows some strength ABOVE today's high of 7.33 that it will work its way up to $8-9.50, IMO. (I might place a buy stop limit order, stop 7.34, limit 7.38) We also have divergence forming on the PPO (stockcharts.com) which gives even better odds for a follow through to the upside, that is, IF the price starts moving up. I do indeed think a short-term bottom is in, but whether it is a long-term bottom will need more evidence later. Stop loss to be placed below hammer. (Disclaimer: price is way below moving averages; it could be way too soon to be jumping in--definitely bottom-fishing.)
Yes, that stock is a good buy right now. I know for a fact that the company definitely has its act together. And even though you didn't tell us the name of the company or even give us a ticker symbol, I know the CEO is brilliant!
LOL, okay PEIL, you got me! MCP But further study of its chart makes me nervous that it wants another let down below the hammer before it will run up. No telling for sure, as always. Buying early without confirmation of having the price move above the high of the hammer would be dumb, IMO.
Haha, I remember trading molycorp back when it was in the high 30s. Would've never believed it would get this far. But yeah, I have to agree...this is a falling knife.