Wednesday, February 2, 2011

Updated Trade Alert...

SBCF was featured a few days ago, it's still looking pretty god to me.

 This is a nice looking rounding-type bottom, 3C daily looks very bullish. It's broken out and is in a triangle consolidation, which is usually taken as a continuation pattern. Because this is a Cats and Dogs trade, I think manipulation of the pattern is very unlikely.

 The 15 min 3C chart shows a rare positive divergence, as technical indicators typically get a little whacky inside consolidations or tight ranges.

 Here's a Trend Channel stop just below 41.60 so there's less then $.10 of risk per share (of course we can't account for surprise downside gaps). In any case, the set up and the risk profile both look very good.

MACD is very positive and volume looks right for a consolidation. All in all, this is a pretty choice looking chart. However, remember the low price of this stock and relatively low volume makes this a speculative trade and risk management, as always should be in place.

**Make sure to check the earnings date, I believe it to be late this week.

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