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EricMoore's  Instablog

EricMoore
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I am a full time stock trader having three year of experience in the stock market.
My company:
TradeStreet
My blog:
Day Trading Blogs, Technical and Fundamental Analysis
  • Trading Plan For RMTI For Second Half Of 2013 - Why Would It Reach $10 0 comments
    May 26, 2013 6:09 PM
    Rockwell Medical, Inc., incorporated in the state of Michigan in 1996, is a fully-integrated pharmaceutical company targeting end-stage renal disease ("ESRD") and chronic kidney disease ("CKD") with innovative products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis (also referred to as "HD" or "dialysis"). Against my better judgment, which is never a good way to start out a long argument, I'm recommending analysis below. And if you are a risk taker and can follow my advise, I would ask you to hold your nose and buy Rockwell Medical Inc. (NASDAQ: RMTI). My technical analysis says that it is a good buy-and-hold stock. I expect it to cross $10 in one year time. This stock has already gained the favor of value seeking investors, as is evident by its recent price action, and is poised to move higher. Take note of the chart below, notice when RMTI is below its lower Bollinger Band (I have highlighted them with red arrows), each time RMTI was below its lower Bollinger Band, it ended up bouncing hard. (click to enlarge)

    I had used the 5-day EMA, which as the chart below shown, clearly acted as resistance. The 52 week high for the stock was $10.70 and the low was $3.16.

    (click to enlarge)

    As I had predicted before, RMTI bounced on May 14th and we can see the buying. Buying pressure in the stock seems to be increasing and it begin to fill the gap once stock crosses $4 level. If you are interested in following the updates from top traders on RMTI, please visit RMTI trading plan for 2013

    (click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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