Quick Update on Sarissa Resources

I just wanted to do a quick update on Sarissa Resources (SRSR).  Yesterday I said that I believed that the .081 low yesterday would probably be the final low.  Well today we took out that low slightly and closed at .083 .

I still think that we are going to get a violent upside reaction rally in SRSR pretty soon.  It may be good for 30 to 50% profits.  The real rule though is that we just do not want to see SRSR trade below today’s low.  As long as it does not do that, and maybe gets an inside bar, then I think the upside reaction could start.

You might say it is like trying to catch a falling knife.  Well not exactly.  Sometimes you can catch a falling knife if you are very very careful in how you go about it. 

I have seen this trading pattern many times already, and they have looked quite similar to the pattern in SRSR right now.  The fact that SRSR is a pinksheet stock does not really change the scenario or the final outcome.

One of the most famous upside automatic rally reactions I can remember was in a company called Taser Corp.  They are still public (symbol TASR) now but the stock has been languishing for years now.  But previously when they had enormous momentum the price hit a superbly exciting peak, but then literally crashed down similar to the way SRSR has now crashed.  But then sure enough an automatic rally ensued that took the stock into a violent trading range for months.

It is interesting to me how a stock can move from a phase of low volatility, to a slow build up of higher volatility and then a climax volatility.  That final phase is when we see the widest price swings and the first upside reaction from the crash down phase is usually enough volatility to get a big enough move…

But after that, the stock starts to calm down and go into a sideways trading range for months.  This is because of technical damage that was done and the need for new cause building for the next move.

So lets see if SRSR can get this upside automatic rally tomorrow on the last day of July.

Posted in Online Trading, Penny Stocks, PinkSheet Stocks

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