Low-Priced Stock at Critical Support
11/16/2010 12:01 am EST
Balantyne Strong (BTN) has been smacked down to support at $7 recently. If it holds $7 and can get over the 200-day simple moving average (SMA) at $7.19, then it can run towards the top of the channel with resistance found first at $7.50 and followed by $8.14 and $8.36.
If it fails at $7, then a short down to $6.50 seems safe. The relative strength index (RSI) has bounced at 30 once and is near there now, and the moving average convergence divergence (MACD) indicator is flattening, so be ready for either scenario.
By Greg Harmon of DragonflyCap.com