TA analysis of RMBS

Discussion in 'Stocks' started by oraclewizard77, Mar 23, 2009.

  1. oraclewizard77

    oraclewizard77 Moderator


    As we can see, lots of volume selling on negative ruling by judge.

    Now as different judge gives positive ruling, we start to get volume buying spikes. Also, positive is the 10 day ave crossing the 50 day, setting up a possible new run to $ 18/sh - $ 22/sh.

    Yes, obviously the volume is caused by verdicts, but we can see lots of follow through trend either negative or positive depending on the verdict. Another good pr from up coming trial should cause positive momentum over many weeks that could push us to higher high depending on the overall market during that time. RMBS would obviously be selling right now for $ 25/sh if we were in a bull market.

    We are selling at bear market prices, so we do need a better market for those waiting for $ 30 - $ 40/sh. However, even in a bad market, news moves this stock and we can see an easy 100% return say 10 points while risk is $ 3 points to downside on trial delays.

    On last run up I did start selling out of my position and continued selling as the stock fell down. Now with positive rulings and a still inexpensive stock price, I see an easy 10 points of profit and am back in it to win it.