Shares of DayStar Technologies, Inc. (NASDAQ: DSTI) were down almost 7% on the day. I'm here to warn you of one thing: this is not the time to be calling the bottom in this stock.Momentum stocks, by nature, quickly become falling knives when share price strength weakens. DayStar Technology, a solar panel stock that traded up with its peer group, is no different. Although I don't know much about the particular economics of the company, I'm well-aware of how 'pumped' stocks soon fade into oblivion.
As you can see from the chart below, DayStar was recently unable to hold the crucial $7 per share resistance level. Additionally, the stock has soon retraced its recent gains each time it has become overbought on the RSI indicator (red circles on the chart).
As I said before, the stock is down today. Although this might appear to be a 'rest' from recent strength, I believe the stock is prime for a roll over. Be careful and protect your profits.
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Reader Comments (Page 1 of 1)
1-07-2008 @ 12:11AM
Mika said...
Definitely you are short! Just to be frank now dont tell that SOLF is overbought at 20, 30 & will fall. It is not at 38.
Many stocks run much higher. This one is still within teens. There have been lot of insider buying recently.
I dont need to provide you any proof, search for yourself.
You think the whole market is falling because it has been overbought? Definitely wrong. Please keep your advice in your mind then putting it here & bashing.
I am ready to sell provided you give me guarantee that if the stock price rise, you will compensate that for me, if you cannot then please dont talk!
Better stuff this in your...
1-10-2008 @ 8:21PM
sandpblake said...
Has anyone looked at the technology behind this stock...and the potential to drop manufacturing costs to less than a dollar per watt. Also look at the conversion rate of the developed material. Now how can a Company producing heavey glass substrted panels compete. This technology could transform the face of the world.
1-19-2008 @ 10:44AM
wonder1961 said...
I should have paid attention to the warning before I bought this DSTI stock. Now that I got burnt dearly.