Radioshack is ready to unload there inventory this Christmas shopping season. CEO, Joseph C. Magnacca, introduced the Tech the Halls promotion for the fourth quarter. Consumers might be tempted to stop by a local Radioshack for a cheap tech Christmas stocking stuffer.
The stock pattern...
I'm seeing a typical Fous Revival Pattern shaping up in RSH stock. Fous patterns are very reliable, with a 73% chance that the stock will reach it's third resistance target price. There is also a decent chance that the stock will breakout at the third point of resistance. There is one caveat, we need the market to continue to hold up or move higher for RSH to have a breakout. It was around this time last year we saw Best Buy BBY stock breakout and was the best performing stock of the past 12 months.
I should also add, for several months Radioshack has been listed as a top 20 short interest stock. So we could get an added short squeeze bonus pushing RSH even higher than I'm forecasting.
Double Bottom Pattern... Now the question is what shape -- Adam or Eve??
QuantitativeExhaustion
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I am recapping and updating RSH stock chart.
Panzer_4183
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i agree with you. I am looking for littlemore down for entry but basically price is so squeezed that next stop below 2 could be BK. Lots of Institutional players are involved in this stock, even if they wanna dump the stock they would need to raise it up and suck in the small investors. Thats the reason i think that this is a good opportunity for buying this stock. On the other side, new managemant is in the house so it could have a good chance for turnaround . Any way speculative buy
QuantitativeExhaustion
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Looks like investors will get a second chance. Went to RadioShack for Black Friday discount items were cleared off the shelves first three hours, and online inventory was sold out as well. Looks like RSH played it right by not opening on Thursday and expecting people to buy smaller items, flash drives/HDMI/Batteries at RadioShack. They were also selling phones and phone plans just as fast
charttrader
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Thank you very much for the update!
Panzer_4183
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I am watching this stock for months, now its almost in the zone for trading around 2.6-2.4 . 2.48 is my entry 4000 stocks
QuantitativeExhaustion
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I am as well, looks like 1st quarter earnings Feb. 24th will be a trigger that can help RSh fly. I'm not so sure we break this ascending support line. Very much like where it is now. I trade options/not so much stock buying, so timing is important for me. We want this 2.60 area to hold for next two months to keep the volatility extremely low and options cheaper. If I'm looking at this left for dead carcus like a vulcher, I'm sure others options traders are as well.
We both can take down a 6 figure gain.
QuantitativeExhaustion
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You're right
We could see a quick drop and into a diving board pattern. Those are very quick and it's usually a bearish fake-out to rid weak hands so big money can scoop up cheap shares.
QuantitativeExhaustion
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Nice Pop Today
QuantitativeExhaustion
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Faster signals showing positive divergence. Slower signals are neutral.
Double Bottom Pattern... Now the question is what shape -- Adam or Eve??