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.
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.