Rex,
I don't think these comments on RRI are going to be particularly enlightening, but it's a quiet day. I noted many weeks ago (on HTP, I think, but maybe here as well) that RRI was entering a range (9.80 to 8.80, although in hindsight it looks like 10.00 to 8.80 is more accurate) where it would stay until something, technically, changed on the stock.
We can go into minute technical detail on money flows, volume, support & resistance, moving averages but it all doesn't mean a whole lot (and to the fundamentalists here it means less than nothing), but the technical reality is this stock will stay in this channel until something changes, until one of the trends conquers the other. The short term trend I see started in July with a top that then failed and retreated to support at 10 where it could not find support. Since then it has traded on ever lower volume, money flowing out of the stock, punters losing interest, in the channel I described.
Its longer term trend is up and began with that magnificent bottom in October of 02 and continues intact. Maybe.
Will the longer term trend finally conquer the shorter term trend, or has RRI seen its "day" in all reasonable timeframes? Difficult to say.
To me, this kind of trading pattern HAS TO test at least once again the bottom of the channel, 8.80 or so, and see if buyers show up again for the stock. That level is very quickly coming into contact with the 200 dma, and might prove interesting enough so that the stock will make its bottom and then continue on the major trend line (up) again.
I think, however, it is more likely than not that it will test and then pierce down through that support line. When it does, look out below, as the next support is down at about 5.50, and that would be quite a haircut for anyone holding RRI from $10 or so.
So, unless you are trading this channel (selling in the high 9s, buying to close in the low 9s, etc.) this stock offers nothing until it either breaks down through 8.70 or up over 10.20, on volume.
JMVVHO, of course, and YMMV,
Kb |
