I found this stock on my scanner. PSUN may not be done falling.
As of today, the news is not good. The company posted a quarterly loss of 22 cents per share driven by a 24% plunge in same store sales. CEO described the company as having a lot of work to do and expected another quarterly loss. A little info sometimes helps gage the time frame you want to use, but is not always necessary.
Here, we can see that PSUN has come a long way as most stocks, from 0.72 on Jan. 26, 2009 to 4.88 on June 1. It made a 50% fibonacci correction to 2.85 on July 24, 2009, and then ran up to 4.50 and has turned down since, to the present level of 3.51 close today. The intraday low of 3.29 is a healthy 72% correction from the 4.50 level.
There may be a small bounce here to the 3.80 level. It could correct even further higher to the 4.00 level if the market as a whole pushes further higher. However, I think that the correction from 4.88 is not over yet, and PSUN could push lower towards 2.26.
The correction form 4.88 is still pretty young in duration on a daily chart 6 days long. Look for weakness or lack of direction for the next 3-4 days. This latest high of 4.50 could have been the B leg of an ABC correction.
With a tight stop a trade could be put on if the MACD 30min signal line crosses and the subsequent retest of the 3.29 low holds. Watch for the 2.85 level to be tested however, if it holds the correction to the next wave higher could be more powerful and lasting.
Disappointing news can sometimes create the right price, not just always a bad price. How that is determined is up to the individual trader.