Wednesday, September 2, 2015

RWLK ReWalk Robotics Daily Chart Falling Wedge Oversold Positive Divergence

The robot IPO ReWalk showed great promise. Traders were throwing money at it but the price is cut in one-half over the last few months. Robot technology likely has staying power in the overall economy moving forward. The weekly and daily charts are positively diverging but this is another dangerous and speculative knife catch. The lower standard deviation band is 7.86. Keystone's 80/20 rule says 2's lead to 8's so the breach of 8.20 opens the door to 7.80 but the stock may base at this 7.7-8.0 level and recover.

Price is below the moving averages requiring a mean reversion higher. Keystone bot RWLK yesterday opening a new long position. Will likely add to it if it drops to the 7.7-7.9 area. This a dangerous speculative trade but the risk-reward is attractive since the positive divergence launch may send price sharply higher. There are other small speculative stocks setting up with possie d that are potential longs all are dangerous plays such as AVP, DCTH, UNXL, SYNC, STRI, SGOC, SHOS, NAO, PRGN, ATRS, CPST, ETRM, MGPHF, ENZR and MCRB to name a few. These stocks need intense scrutiny with fundamental analysis before considering a spec long play but technically they are looking attractive. Speculative long plays are only for money  you are willing to lose.

Keystone still likes sugar this year although it has slip-slided away. Keystone bot SGG as a new long position and will likely increase the position steadily going forward through year-end looking for a sweet recovery in sugar into the EOY. Everyone hates IBM. The charts are starting to set up favorably so Keystone may start into IBM on the long side say in 2 or 3 weeks time. SSYS and the 3-D stocks have taken a nice initial bounce off the bottom six days ago. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 9/3/15 in the evening EST time: RWLK got punched in the face yesterday losing over -5% and in today's trade fights back gaining +0.7%. Price is at 7.60 so the 7.20 to 7.60 area would be looked at as the potential basing area

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