Stock has retraced to 38.2% Fib today. Strong support just below at 6.5 reflects this.
In terms of retracements, I suspect wouldn't retrace to next Fib level as:
- Probability of deal completion hasn't changed that markedly with today's announcement. You don't put that sort of detail in print as to reasons for delay unless legitimate (refer next point).
- delay due to staffing problems at land titles office, so allowing for nervous nellies a 38.2% retracement seems about right in my books for a small retrace on day where selling rife into afternoon for all stocks.
- this stock has far too much traders all over it to allow it to fall much further than this level on news where we haven't seen much change other than delay which gives chance for sp to have a very temporary breather.
- On proviso DOW doesn't have a shocker I would be very surprised if don't see SSN back in 7's tommorrow.
- I suspect most traders who have been actively trading this stock are holding a position for tomorrow on this basis or subject to DOW holding up will be jumping back in quick smart
Guess we will see whether i am right tommorrow but reasonably confident I will prove correct tommorrow.
SSN Price at posting:
6.6¢ Sentiment: ST Buy Disclosure: Held
