The 20-Day Play- SMSI
In order for a stock to make The 20-Day Play, it must trade above its 20 day simple moving average for at least 20 days, and then bounce on or near the 20 day simple moving average.
SMSI has only traded above its 20dsma for the last 18 days. While failing to meet the time criteria for the setup, I still believe it is a good candidate, albeit premature. The stock rocketed on a great earnings report on monumental volume. It has since pulled back on decreasing volume. The MACD and the Stochs show there may be a day or two more left in the pullback. This puts the price touching down on the 20dsma just as the Stochs edge near oversold.
One other observation. A Golden Cross (50dsma rises from under and crosses the 200dsma) looks to be confirmed tomorrow.
2 comments:
Watching this with you. Looks like a good call so far. Like many of the fundies as well since I've been a mac owner for years.
Hope you did more than watch this today.
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