Have you changed your outlook for BNK from your May 20th comments?
This will be the third time I have run the charts on Bankers Petroleum Ltd. in 2011. The first time was
Another review of the charts will assist in making a buy, sell, hold decision.
The three-year chart depicts the downtrend that started in March of 2011 and has dragged the stock from a high of $9.92 to its current value of $4.40. A 55 per cent reduction in market value is what will drive investors to extreme alcohol therapy for relief.
After conducting research on the company's first- and second-quarter reports, it's clear that although the year-on-year and quarter-on-quarter performance was outstanding, they failed to meet Street expectations. Typically, when a company fails to meet the Street the stock gets punished. BNK is expected to report its third-quarter on Nov. 11, 2011. Make sure to post this date on your calendar if you own or are thinking of owning this stock.
The six-month chart provides a visual example of a stock in distress. A series of lower highs and lower lows, a death cross that formed in late June of 2011, and an established downtrend. At this point in time the RSI and MACD are not indicating a shift in momentum to the upside. BNK has caught a couple of bounces off the ledge of support at $4.00, but until there is a trend reversal it would be prudent to stay on the sidelines.
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