I’ve been a little behind on the content of late, but am getting caught up now. EFSF deserves some observations as my targets keep being blown away, and the strength of this stock causes me to continue to upgrade my target price.
My $.40 price target was breached two days ago, so if you sold the stock you should have made a great profit. Never look back.
This one has almost been too easy. There are a lot of fervent believers in this company, and now that it has woken up, so have many loyal shareholders. $1 is probably in the crosshairs sometime this year, but many feel much higher levels are in store further down the road.
Technically, this stock is behaving like a well trained hunting dog. It goes exactly where its master expects. Here’s a chart I published in the BLOG on Feb 9:
This is a very long term look at the stock- in fact, it goes back to when the company first traded publicly.- 2.5 years ago.
I predicted the stock was destined to get up to its long term downtrend line. That was a fait accompli. Where the stock went from there was technically far more interesting.
Here is the same chart extended out to today:
Look at the way the stock went straight to the downtrend line before offering any kind of correction. Absolutely wonderful.
So, where to from here? In my view, the key still remains in the long term downtrend line. If the stock can get through that line with vigor, it will signal a major trend reversal in this stock, and from there the sky is the limit.
I suspect it might take several efforts like those of the past couple of days to really breakthrough and breakout. In technical analysis, persistence breaks down resistance.
I believe it could take one or two more tries, but once we breach the downtrend line it’s going to get really exciting.
So- here’s what you really want to know. What do you do now? Good question. The company has not delivered much news of late. Any positive developments could send us much higher, and something is overdue.
Since the move has been so short term, here’s a short term look at the current good and perfect entry levels:
These retracement levels only cover the last six days, so it’s pretty short term stuff. Not to worry if these levels don’t hold up- we just have to look a little longer term.
According to the chart, $.44 is a good entry level, and $.395 is perfect. As such, I would now set the short term SSL at $.355.
The company is due to come up with something exciting in the near future, so if your not on board, don’t waste too much time.
Fervent believers are looking very good right now. I hope the company makes them look even better.
Comments and questions are welcome.