Easton Pharmaceuticals, Inc. (EAPH)

[eelfland]

What I said was that the nine-day RSI indicated that it was oversold. It's even more oversold now, with the number at 19.30. That's not a buy signal, though it indicates that the rate of decline in the PPS will decrease soon. I am pretty sure about that. The way EAPH has been getting sold off into a lack of demand, it will be in the trips in a few days. That's not likely.

On the other hand, there's no reason to expect it to rally, either. Nobody wants it. The RSI will go up to a more normal level even if the PPS just goes sideways for a while instead. It doesn't need to rally, and most likely won't. Don't be surprised if the company puts out another PR in another effort to drum up some more demand for it, though.

In any case, there's no reason to suspect that whoever's been selling so enthusiastically is going to run out of stock or the desire to sell it. The selling will let up, though, or the PPS will go below zero, and that's not likely to happen.

If EAPH gets clobbered again tomorrow, there wouldn't be much risk in buying some, and it might even be a good idea. Look at what it did on December 22, 2014. Buying into a selling climax like that can be a good daytrade. I might even do it myself.

http://stockcharts.com/h-sc/ui?s=EAPH&p=D&b=5&g=0&id=p30705614587