Tech Analysis - JE Nov 28th Reviewing JE Charts today. RSI is around 38 and indicates it could be strengthening. MACD is now meeting the signal line, albeit still negative as the moving averages are still trending downward.
Moving averages for 50 and 200 day are around $9.80 and $11.00 respectively. The stock is trading within its bollinger bands with the 20 Moving average around $9.20. Low band is around $7.80, high band is around $10.80.
Given this, I still expect this stock to be around $9.15 at or around the ex-dividend date. I expect this because I expect that the stock will track towards its 20 day MA and the bollinger bands will begin to tighten as a result of the stock price consolidating. The MACD should start tracking above the signal line which would indicate a short term buying signal, which should also buoy this stock.
December's dividend announcement will be an important signal from management about its future outlook. If it is maintained, it will express management's confidence that their growth targets will be met and that they expect the financing arrangement to come through with minimal problems. However, if it is cut, that could lead to further volatility as some will exit the stock (dividend investors) and others will buy it on the dips (for the growth potential). Once this uncertainty is resolved, the overhang on this stock should dissipate in either scenario.
Steam