My amateurish reading of the Superior Plus chart shows we're probably approaching what has become a regular quarterly earnings disappointment and share price downdraft, followed by a partial recovery over the following 2 1/2 months. Do you see any indication that this quarter might be different? Or do you suggest I cut my losses and sell? I look forward to hearing from you.
I have posted on Superior Plus Corp. twice in the last five months. The first time on September 17, 2010 when the stock was trading at $11.99 and again on November 12, 2010 when it was trading at $10.71. In those posts, there didn't seem to be any incentive to get involved with a stock that was selling off but on December 08, 2010, a double bottom formed making the chart more interesting.
The three-year chart depicts the double bottom that gave SPB a lift off of support at $10.50. on December 8, 2010. The stock is now just breaking above the downtrend line that has been providing resistance since April of 2010.
The average daily volume on the stock is 343,270 over the last three months. Since December 8, there have been some days above the average, but not what I would call an overwhelming number.
The six-month chart illustrates the double bottom that formed in late 2010 and signaled the current advance. The RSI and MACD both signaled the uptrend that has seen SPB break above the 50 day moving average. The next level of resistance comes in at $12.00 and currently the RSI is signalling an overbought situation. On January 21, 2011 over a million shares traded which is significantly above the average. But as we say in my house, " One data point doesn't make a trend but it could be making a statement".
The company is set to report Q4 results on February 18, 2011. That's the next flex point. From what the charts are indicating at this point in time it appears that there is a trade until the news hits after St. Valentine's Day. Cold is gold for natural gas and natural gas liquids!
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