The Options Box

[Bird of Prey]

bbgold asked what I thought of PSFT


here goes, it has a ways to go...down that is. Strictly from a technical standpoint there is only minimal support until this stock reaches the low twenty's.

Look at the chart



Notice the constriction of the Bollinger Bands as the most recent dive begins (constriction signals direction change). Also the last rally did not close above the high of the previous rally. Longer term PSFT is in a major downtrend making lower highs and lower lows until it breaks this pattern i would be bearish on PSFT.
Short term is also bearish, though it appears that money is flowing in that could be a false signal at this point. it is really to early to tell. I'd feel better if it had broken the downtrend on the last rally but it didn't.
Todays gap down confirms the downward trend.

Conclusion, if you are short or hold puts (smile bob) let em ride, unless something really strange happens this will be lower in February.


The Bird of Prey