I'm simply pointing out a technical pattern in a strongly trending stock. The pattern shows up once a stock has a LOW above the previous HIGHEST LOW in a consolidation. I marked this situation with a GREEN CIRCLE. These green circles preceded the nice run-ups in RVLT.
I realize they also coincide with new highs but what I prefer about this method is that it looks at the bottom (support, strongest buyers) of the market in an advance and not just the top (extreme buyers only).
We can see if this pattern continues.
I have not found news to explain the recent rebound from the low $3's. A rally on no-news tends to continue. If you see the news on the tape, feel free to post it here.
Thanks and cheers.
Technical Tim 1:13PM EST Thursday, May 30, 2013
Comments
timwest
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RVLT reached the implied targets from the setup, and I will hopefully find a way to get back into this stock at some time in the not to distant future. I'm considering re-purchasing a position and selling 6-month covered calls for a generous 30% rate of return for the at-the-money $5-strike call options. I might, however, just sell the $5 strike put options instead, but I will wait and watch a bit longer.
timwest
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The news that I have found relates to strong insider buying in the last month without any insider selling. There are a lot of nerves about potential secondary offerings of shares to finance working capital and growth. This stock is a volatile, microcap company in the LED lighting industry.