Strateco's Accumulation Continues
Just when you thought Strateco might just break out after closing at its daily high yesterday, the professionals easily brang the price back down to their comfortable accumulation range.
And the longer this sideways price trend continues, the more certain I am that it will break out when the professionals have accumulated as much of the loose shares as possible.
Then they get the promo machine going and all of a sudden everyone will think this company is so hot. People will try to buy shares hand over fist.
But the pros know how to play this and they will only slowly sell their to euphoric crowds. There will be several gap ups to excite the crowds even more.
But after a nice run, the pros decide that they don't have much more to give as far as promotion and they will unload the rest of their shares in just a few abnormally high volume distribution days.
The pros then watch with smiles on their faces as the share price slowly slides down until a level where the pros feel comfortable to begin accumulation again.
The cycle then occurs again if the pros feel the stock will have enough promo potential. If not, they pick their next target and begin accumulating.
Is this going to happen to RSC for sure? You can never be 100% sure but like I said before, the longer this flat chart with low volume goes on, the higher the possibility of share accumulation.
If you can pick up shares tomorrow at $0.80-0.82, I think that is a good entry point because these prices seem to be even slightly below the accumulation range.
Now since the pros can read this just as you can, they may want to throw in a whipsaw move to the downside one day to pick up all the open stop losses. There is not much we can do about this other than stick to our stop losses even if we lose small amounts to annoying whipsaws like this.