SONS Retracement
By Johns Wu on Aug 20, 2005
I added a new stock to my personal watchlist today. I mentioned SONS in my previous VoIP Stocks post, and I like the pullback that its making. It gapped up because they had a great conference call a few days ago. Now, the stock is retracing back, maybe to fill the gap.
Its currently resting at a very strong support right now, so I’m not sure if it will actually plummet a little more to fill the gap or not. I also like the descending volume on the pullback.
I’ll be watching to see whether or not it fills the gap. If it does, it should be a very low-risk purchase. If it takes off without filling the gap, then oh well.
8 Responses to “SONS Retracement”
Need to see how it trades Monday. It has closed below $5 two days in a row now, so there will be selling pressure from margin traders.
For those on margin, they will have till Tuesday to satisfy calls that would have been generated when the stock first closed below $5.
So there is the possibility it will go lower, before moving back up again.
Made the call this afternoon for a safe entry point of $4.91. No one is perfect, but I think it’s time for it to reverse course.
We’ll see.
i’ve been watching SONS today as well. i was hoping it would go a little lower. i’ll have to see what happens tomorrow i guess…
good luck rob.
Looks like you got your wish. It hit $4.85 this morning before going back up to that $4.91 I mentioned.
Good luck to you too.
Check out Worldgate (WGAT). They make a video phone )Ojo) that will be marketed by Motorola. We’ve heard a lot about video phones for decades, but VOIP might just make it practical.
Looks like I was wrong on the $4.91 entry point. Closed at $4.68 today. There is support down here from August 4th, so this may be a good point to enter or average down.
When SONS does rebound, it should re-visit $5.25, which would be good move from here.
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Its ready Waiting 4 someone to give the go they are waiting for something but what…..