Has Radiation Therapy Services Therapy Hit Bottom?

| About: Radiation Therapy (RTSX)

I have been bullish on the cancer treatment stock, Radiation Therapy Services (RTSX), as the company has good growth and strong fundamentals. But the stock has been mired in a downtrend that has been troubling.

It is sometimes painful watching and waiting for a stock to bottom, but I have held off adding to this position until I see some signs of stabilization.

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RTSX Chart

On Thursday, the stock bounced sharply out of its recent consolidation. Volume surged on the move, adding to my conviction that the bounce could have legs. Also, a look at the chart shows the stock is coming out of deeply oversold territory.

The stock still has a lot of work to do, but a reversal of the recent downtrend would be a great start. And Thursday's action could be the first step in establishing a new uptrend.

Disclosure: The author is long RTSX.