When we looked at this chart a few days ago, I said - "The gap has pushed the stock firmly into a short-term oversold condition but that former resistance now looms as heavy overhead resistance..." The shares popped higher yesterday and have now begun to work off the short-term oversold condition. Here is the current analyst sentiment profile -
* Percent of analysts tracked by Zacks who rate the stock with a "buy": 54%
* Number of analysts tracked by Zacks: 24
* Short interest as a percent of float: 3.7%
* Short interest ratio: 1.738
* Put/call ratio percent rank: 0.0%
* Overall Equity Scorecard reading: 3.0
The put/call ratio is at its lowest point of the last year and short interest offers little in the way of potential buying. This morning's upgrade is interesting as it shows that despite the gap not everyone is giving up on the stock.
However, I am curious to see how much "goodwill" will be bestowed on the shares as they try to bounce here. Back in July, when the stock was trying to rally, nearly two-thirds of the ratings were "buys". That's worth keeping in mind as there are likely some former bulls who are now feeling some pain and could be looking to sell into any rally attempts.
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