One of my favorite setupOne of my favorite technical setups... An oversold condition on both the Slow Stochastic and the Relative Strength Index
and a touch down on the 200 SMA line. And to make it even more interesting, we have a Falling Wedge pattern. So as long as the 200 SMA holds, or it doesn't drop below the wedge formation, we might see it break out of the wedge and make a go for
.56 soon and give you a nice 51.3% gain from current share price. The proper way to play a Falling Wedge formation is to wait for the break out of the formation on good volume. This would make the entry in a few days at around
.40. The REE sector has cooled down in the last few weeks and is the reason why I am not putting my high target at
.69. If it turns and starts to run again, you can always re-evaluate your position as it nears the initial target.
See chart
here, other weekly picks
here.
Cheers!