|
|
|
home » small cap highlights
Tony Golan
Chief Technical Analyst
StockProfit.com™
 Zoom
This week I chose to highlight the chart of Skinny Nutritional Corp. (OTCBB: SKNY). SKNY is reversing a long-term down-trend. The stock is now making higher highs and higher lows well above a rising 200-day moving average (the red line on the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting stock in super-strong up-trends, is way above the 25% threshold line, indicating that the up-trend in SKNY is moving much faster than the S&P and the stock should therefore continue outperforming.
SKNY spent much of the past year in a long-term down-trend and was making lower highs and lower lows below a declining 200-day moving average. However, in early March, SKNY hit a low of 0.034, and started trending up. On Friday, SKNY closed at 0.265, which was its high of the day, with a long white candlestick and above-average, rising volume.
SKNY's last corrective low was at 0.145 on April 17th, so if it were to close below it, it would mean the intermediate-term up-trend is reversing back down and the stock would then no longer be likely to continue going up.
As far as establishing new positions in SKNY, it is not a good time to do that after the stock has gone up so much and definitely not when the stock is making a new high.
Tony Golan
Chief Technical Analyst
Disclaimer: Copyright© 2008 StockProfit™. All rights reserved. StockProfit™ is an independent electronic publication providing information on select public companies. StockProfit™ is not a registered investment advisor or broker-dealer. There is a risk of loss in all of trading. Past performance is no indication nor guarantee of future results. The information contained herein is believed to be accurate.This update is provided as an information service only, and the statements and opinions in this update should not be construed as an offer or solicitation to buy or sell any security. In no event shall StockProfit™ and/or its publisher, P.A. Relations or any of its employees or affiliates, be liable for any direct, incidental, consequential, indirect or punitive damages whatsoever arising out of the use of the Information, or for any errors or omissions in the content thereof, including, but not limited to, from any investment loss, damage or expense incurred by any investor resulting from the Information, or from the purchase or sale of any profiled company or any company which we make commentary. We recommend using good-'till-cancelled stop orders to minimize losses in the event of an adverse price movement. We have not been compensated by company(ies) mentioned above in any way. We do not hold any positions whatsoever in the above mentioned company(ies).
|
|
