GREY:XEBEQ - Post by User
Post by
tamaracktopon Feb 26, 2022 12:41pm
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Post# 34464456
Mid-morning Musings
Mid-morning MusingsNotice how over the last two days Xebec has sold off after opening and recovered to close at the high of the day. The daily range was fourteen cents on both days, but that's pure coincidence, and probably not even worth mentioning other than to draw attention to the fact that daily ranges are only going to get bigger from here. That's unquestionable.
Nevertheless, this is a nice change to the pattern we've become accustomed to, and very likely causes the shorts some discomfort.
The longs have very limited risk. The shorts' risk is unlimited.
Xebec has rallied 15.3% off its low two days ago.
It's hard to believe that Q4 numbers are less than 3 weeks away.
Very soon, there will be no more fodder for much of the debate that's been raging on this board.
If I was short this stock, right now would seem as good a time as any to cover.
The same applies to new money looking to participate here for the first time,
as well as anybody who might be thinking of averaging down.
This excludes of course those who wish to wait for more tangible evidence of a turnaround, whether that evidence comes in the form of fundamentals or stock price.
It would be difficult to argue that their approach isn't a sound one.
The environment today may potentially be brewing a perfect storm.
The 21-day moving average is now $1.74.
The 50-day is now $2.032.
Technically there is absolutely no resistance between here and those levels.
There is none whatsoever.
I realize that $2.00 hardly seems reason to celebrate.
It isn't, but it's 27% from here and it could close that gap in the space of a few days.
Again, this is hardly consolation for those in at $6, or $8, or $9, but how do you eat
an elephant?
One bite at a time.