There may be a ‘bounce play’ developing in SRSR Sarissa Resources, the pinksheet stock that has a tremendous run over the last few months. It peaked out near .20 cents last week and the last few days price has been literally free falling like there is no tomorrow.
This is a highly speculative type setup (or is it?), however I believe SRSR could be setting up for what is known as an ‘automatic rally’ either by end of day today or tomorrow. An automatic rally from current levels could lead to a 50% move higher.
An automatic rally is just like a rubber band or a bungee cord. You can stretch a rubber band only so far until the opposite forces take over and then it SNAPS back in the other direction almost automatically.
The heavy volume today seems indicative of us being close to washout levels. I would not be surprised to see us hit .14 or .15 cents on a rebounding automatic rally.
The only question is, is today the bottom or tomorrow. I am going to stick my neck out and say that .081 is the final low and that we will not have another washout day tomorrow. I suppose we could break .081 tomorrow and then reverse back up on an intra day reversal… but that is guesswork. I will just stick with the low being .081 and believe the automatic rally should start either by late end of day today or tomorrow.
This is the type of potential setup that has to be watched like a hawk, because things can reverse or continue in the same direction VERY FAST. So definitely not for the faint of heart.
But from a risk reward perspective, the risk is probably close to be at the lowest level right now, although it appears to be at the highest level. So we will have to see how this forecast plays out. The absolute worst price destruction I can see happening on this plunge is .056. So if I am wrong that .081 is to be the final short term low, then it could be that .056 is the next worst case target for the short term bottom.