Anyone who has been reading my commentary on SPKL knows I have been suggesting avoiding the stock for a couple of weeks. I felt as if the stock had gotten a bit ahead of the company, and it would be prudent to wait for a pullback.
So- here’s the big question- what’s a good entry level to continue to accumulate this stock? I had the opportunity to watch some of the action in the stock today, and was very impressed with a technical reverse when it pulled back to the $1.43 level.
Looking at the chart, it is no surprise. Here’s why:
Here’s a chart measuring the entire monster move from $.56 to $2. So, as you can see from the chart, the $1.43 level was a nearly perfect 38.2% fibonacci retracement. If you jumped on the stock at that level, you made a great move as it appears so far.
If this level holds, it seems as if that was the opportunity. If the $1.40 or so level gives way, the $1.12 range would be heaven sent for those looking to jump in.
In the current market environment, these pullbacks are tending to be a bit shallower and short lived, so $1.43 might turn out to be our best opportunity.
Maybe, maybe not. I know that’s not a definitive as some of you might want, but short term calls are tough.
Perhaps a partial position is the answer, keeping in mind there could be lower opportunities in the future.
Comments and questions are welcome.